Major Dealership Restructuring: Marshall Motor Group Shutters Six Sites Amid Strategic Realignment

Marshall Motor Group—now part of Constellation Automotive Group—has confirmed the closure of six franchised dealerships by the end of March 2025. The affected sites include two Volkswagen outlets (Horsham and Aylesbury) and four Stellantis outlets (Peugeot dealerships in Canterbury, Ashford and Peterborough, plus Marshall Vauxhall Peterborough). Volkswagen Group UK described the closures as part of a “necessary evolution” of its retailer network amid “unprecedented change” in the market. Industry analysts note this aligns with broader trends of electrification, digital retailing and dealer-network optimization that are reducing the need for a large bricks-and-mortar footprint.

Strategic Realignment: Volkswagen Sites in Horsham and Aylesbury to Close

Marshall Volkswagen Horsham showroom (pictured) is one of two VW outlets slated to close by March 2025. Marshall Motor Group has confirmed that Marshall Volkswagen Horsham and Marshall Volkswagen Aylesbury will cease operations at the end of March 2025. Employees at both sites were informed in late February, reportedly with staff describing the news as a “total shock”. Volkswagen Group UK stated the move is part of its “necessary evolution” toward a future-ready dealer network. The company will write to all affected customers outlining alternative sales, service and parts arrangements to ensure continuity. (Marshall declined to comment on the closures when approached by the media.)

Stellantis Cuts Ties: Four Marshall Dealerships Affected

In parallel, Stellantis UK (owner of Peugeot and Vauxhall) announced that four Marshall-operated stores will end their franchise agreements by 31 March 2025. This includes Peugeot sites in Canterbury, Ashford and Peterborough, as well as the Marshall Vauxhall site in Peterborough. A Stellantis spokesman said these contract terminations were agreed “by mutual agreement” and emphasized that Stellantis is working closely with each site “to ensure that there is minimum disruption to customers’ new vehicle orders and after-sales support”. Staff at the affected Stellantis locations were reportedly told that the move was part of Marshall’s decision to “downsize its number of Stellantis sites” rather than due to performance issues. Stellantis and Marshall have pledged to coordinate any pending orders and service bookings so that customer care continues smoothly during the transition.

Broader Context: Constellation Automotive Group’s Restructuring

These closures occur in the context of Constellation Automotive Group’s recent overhaul of Marshall’s portfolio. Constellation (parent of Cinch and WeBuyAnyCar) completed its takeover of Marshall Motor Holdings in May 2022. Since then, analysts have expected a rationalization of overlapping or underperforming outlets acquired in the deal. As Car Dealer magazine notes, dealer groups often “tidy up elements from their growth” after major acquisitions. Zeus Capital’s Carl Smith specifically commented that Marshall is likely pruning sites inherited before the Constellation deal as part of a broader consolidation trend. In fact, Marshall’s network had grown rapidly in recent years through acquisitions, and management is now refocusing on profitability and efficiency in a high-cost market. AM-Online reports that Marshall told staff the Stellantis closures were not performance-related but part of a strategic downsizing of its multi-brand portfolio.

Industry-Wide Trends Driving Consolidation

Marshall’s retrenchment reflects a wider shake-up in UK car retailing. In the past month alone, “every major dealer group has been taking an axe to its dealer network,” according to industry trade press. Large groups like Lithia/Group 1 and Pendragon (now partly owned by Lithia) have also announced multiple showroom closures. Experts cite several driving forces: sluggish new-car market conditions (exacerbated by the UK zero-emission vehicle mandate), rising employment costs, and the need to refocus capital on electric vehicles (EVs) and digital sales channels. At the same time, new sales models are emerging: OEMs have experimented with agency-style or direct-to-consumer retail, and online vehicle purchasing has grown. As one industry analysis observes, the net effect is that the UK “will need fewer dealerships over the long term,” with surviving sites reconfiguring as smaller urban “experience” centres and service hubs rather than large out-of-town showrooms. This shift is already visible in strategies such as adding EV charging points, reducing fixed ops to specialized services (battery care, software updates), and repurposing excess showroom space for commercial uses. In short, the Marshall closures are a microcosm of the sector’s pivot to an EV-centric, digitally-enabled retail model.

Customer Impact and Transition Planning

Both Volkswagen and Stellantis say they are taking steps to minimize customer disruption. Volkswagen Group UK confirmed that Marshall will be writing directly to customers of the Horsham and Aylesbury sites with details of alternative local dealers for sales, servicing and parts. Similarly, Stellantis is coordinating with the exiting Peugeot and Vauxhall stores to honour new vehicle orders and maintain after-sales cover until handover. Marshall Motor Group has stated it aims to support staff affected by the closures; the company says it is working to “minimize disruption for staff” and to find alternative roles within the group where possible. However, unions and insiders note that, as of the announcements, no formal redeployment offers had been made, meaning many employees now face redundancy unless placed in new positions.

For clarity, the dealerships slated to close are as follows:

• Volkswagen—Horsham: Marshall VW Horsham (closing end of March 2025).

• Volkswagen—Aylesbury: Marshall VW Aylesbury (closing end of March 2025).

• Peugeot—Canterbury: Marshall Peugeot Canterbury (closing end of March 2025).

• Peugeot—Ashford: Marshall Peugeot Ashford (closing end of March 2025).

• Peugeot—Peterborough: Marshall Peugeot Peterborough (closing end of March 2025).

• Vauxhall—Peterborough: Marshall Vauxhall Peterborough (closing end of March 2025).

By contrast, Marshall’s remaining Volkswagen network remains extensive. Volkswagen UK’s dealer locator lists Marshall Volkswagen retailers in at least 15–18 locations across England, including Barnstaple, Bridgwater, Coulsdon, Milton Keynes, Oxford (Kidlington), Reading, St. Albans, Taunton, Tunbridge Wells and others. Even after the two southeast closures, most of Marshall’s VW customer base will still have nearby Marshall sites for sales and servicing, albeit potentially requiring longer travel in a few cases.

Conclusion: The Road Ahead for Automotive Retail

The closure of these six dealerships underscores the profound changes underway in automotive retail. OEMs and dealer groups are realigning their physical networks in response to electrification and consumer digitalisation. Dealers are being asked to do more with less: focus on high-margin service and charging infrastructure, create immersive EV buying experiences, and integrate online sales platforms. As Volkswagen itself noted, the industry is in a period of “unprecedented change.” We can expect further announcements of this type as automakers and dealer groups across the UK continue to optimize their footprints. For consumers, the priority will be clarity and continuity of service, but for dealers and OEMs, agility—and the ability to invest in new technologies and business models—will be key to long-term success.