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Poor management of the business since it acquired Reg Vardy last year, rather than difficult trading conditions, were to blame for Pendragon’s profit warning, an industry source told Motor Trader.
Last month Pendragon said operating profits would slump by £20m in 2007 due to prevailing economic conditions.
However, the downturn in the group’s performance had “nothing to do with the market” the source said. He claimed several of Pendragon’s best performing general managers who joined the group with Reg Vardy, had left to team up with Robert Forrester, the former Reg Vardy managing director, who now heads up Vertu Motors, which trades as Bristol Street Motors.
Last week Martin Boagey left his position as a regional director with Pendragon to become the manager of Bristol Street’s Sunderland Vauxhall site and Peter Stewart, formerly of Reg Vardy and Pendragon, joined Bristol Street as director of internet operations.
A visitor to Motortrader.com said: “Pendragon is struggling not due to sales but due to the mass exodus of excellent, senior ex-Vardy management who have been replaced by inexperienced staff who have taken these dealerships from good profit to losses.”
Meanwhile Pendragon has pulled the plug on its loss making retail operation in Germany by selling its four remaining dealerships for £6m.
The businesses are situated in the Frankfurt and Munich areas and represent the Aston Martin, Jaguar and Land Rover brands. A German group has reportedly bought the sites.
However, the downturn in the group’s performance had “nothing to do with the market” the source said. He claimed several of Pendragon’s best performing general managers who joined the group with Reg Vardy, had left to team up with Robert Forrester, the former Reg Vardy managing director, who now heads up Vertu Motors, which trades as Bristol Street Motors.
Last week Martin Boagey left his position as a regional director with Pendragon to become the manager of Bristol Street’s Sunderland Vauxhall site and Peter Stewart, formerly of Reg Vardy and Pendragon, joined Bristol Street as director of internet operations.
A visitor to Motortrader.com said: “Pendragon is struggling not due to sales but due to the mass exodus of excellent, senior ex-Vardy management who have been replaced by inexperienced staff who have taken these dealerships from good profit to losses.”
Meanwhile Pendragon has pulled the plug on its loss making retail operation in Germany by selling its four remaining dealerships for £6m.
The businesses are situated in the Frankfurt and Munich areas and represent the Aston Martin, Jaguar and Land Rover brands. A German group has reportedly bought the sites.