VW dealer Loders expected to be under new ownership by end of this week

21/11/2011 in News, Dealer News

Click the thumbs up >

Volkswagen and Skoda dealer Loders is understood to be on the verge of new ownership after hitting a financial crisis.

The company already disposed of its Yeovil Audi business to Ocean Automotive earlier this month.

That left it with Volkswagen and Skoda sites in Yeovil and Dorchester.

AM understands negotiations are underway sell the business to Heritage Automotive, which already partners Volkswagen in Bristol, Weston-super-mare, Salisbury and Westbury. That deal is expected to be completed later this week.

Companies House records show Loders’ latest accounts are two months overdue, and Brian Singer, Alan Scrimgeour and Stephen Parkinson terminated their directorships at the start of November. Another director Adrian Bull resigned as an employee and director in June 2011 before the financial problems materialised.

A spokeswoman for the business said it was not in administration, and added that a statement would be issued by the end of this week.

She declined to comment whether a sale of the business was imminent.

However a spokeswoman at Volkswagen UK said it understands the business is in administration and VW is working with a potential buyer to finalise details of a sale of the company and ensure continuity for customers.

Author
Tim Rose

Volkswagen UK

After coming within a whisker of breaking the 200,000 sales barrier in 2007, the landmark sales goal has slipped further from reach in recent years, but there are signs that Volkswagen is preparing for a second assault on the sales summit.

Sales have increased steadily since a drop in 2008 and new models will bring a boost in 2012 as they have a full-year impact on sales, including the new Passat, revised Eos, revised Tiguan, new Golf Cabriolet, new Beetle and the Up city car.

Within the dealer network, where outlet numbers remain stable, there is a focus on customer retention of service and repair through initiatives such as service plan sales, health checks and transparent fixed-price servicing and MoTs to entice back owners of older models.

Note: Manufacturers administer the franchised contracts for cars and LCVs in different ways. Broadly, for some the contract to sell cars and LCVs is managed through a separate dealer contract. For others one contract covers both vehicle types.

AMi seeks to acknowledge the difference and reflect it in the count of each dealer groups total franchised outlets (franchised businesses) and sites (locations).

Volkswagen treats car and LCV sales as coming under separate contracts –AMi counts each individually.