Caffyns closes stores as car sales slide

8th Feb 2011 12:06

Caffyns, the car dealer operating in Sussex, Kent, Surrey and Hampshire, is closing branches to cope with falling sales.It has sold a Citroen dealership in Uckfield and a small Ford business in Haslemere. It is also in the process of closing three other 'underperforming' businesses - a body shop in Hailsham, a Nissan/Chevrolet dealership in Eastbourne and a bodyshop in Tunbridge Wells.Sales of new cars in the four months to 31 January were down by 17.9% from the same period a year ago. Caffyns said it was winning market share as the total new car market fell by 28.4% during the period. New car sales have been under pressure since the end of the government 'scrappage scheme', which subsidised new car purchases when motorists exchanged their old ones, on 30 March. The Society of Motor Manufacturers and Traders said new car registrations fell by 11.5% in JanuaryUsed car sales were up by 11.3% during the four month period at Caffyns, despite the effect of the harsh winter weather throughout the south-east of England in December, the company said."While consumer confidence is clearly central to the financial performance of the company, the actions we are taking to remove under-performing dealerships, to reduce costs generally and to invest in larger, more modern facilities will provide a stronger portfolio of businesses for the future," Caffyns said.