Jobs losses are expected to result from Marshall Motor Group’s closure of its Honda Scarborough dealership and the end of trading from Underwoods Skoda in Colchester.

Constellation Automotive-owned Marshall closed the doors to its Honda facility on Seamer Road at the end of last week as a result of the Japanese carmaker’s network restructure plans, while Underwoods claimed that its March 31 site closure came as Skoda shifted its sights towards increased online car retail.

Underwoods managing director Gerry Wiggins told the Essex County Standard that it was with “great sadness” that the site was closed after almost 20 years serving the area.

Wiggins said the decision to close was "not one of Underwoods making, adding: “Skoda has decided to reduce the number of dealers in their network, with an increased focus towards online sales.”

The Volkswagen Group’s retail strategy was set to evolve with a switch to agency model agreements for its electric vehicle sales (EV) during 2023. That shift has now been delayed into 2024, AM understands.

Last year Honda UK managing director Jean-Marc Streng told AM that it was drawing to the end of “phase one” of a retail network restructure first detailed in in the summer of 2019.

He also told AM that it had “no specific plans” to introduce an agency model to its franchised car retail network.

Commenting on the closure of its Scarborough dealership, Marshall Honda finance director Carole Merry said: “Further to Honda UK Limited’s strategic review of franchise representation in Yorkshire, effective Friday 31 March 2023, Marshall Honda Scarborough sales, service and parts departments will close.

“We would like to take this opportunity to thank you for your business and loyal support over the years and look forward to welcoming you to our nearby retailers in Harrogate, Hull and York.”

The Scarborough News reported that job losses were “likely” to result from Marshalls’ closure.

The Essex County Standard reported that “most” of the staff at the Underwoods Skoda had retained their jobs.

Essex-based Underwoods continues to operate Kia, Mazda and Vauxhall new car dealership, along with Skoda and Ford approved aftersales operations.

Marshall's latest site closure follows a series of changes for the retail group under its ownership by Constellation.

AM reported last year that Kia was ending its franchise partnership with Marshall, amid talk that some of Marshall's OEM partners had been unhappy with the takeover.