Cazoo to pull out of mainland Europe

Used car startup Cazoo has announced that it is to withdraw from continental Europe in order to focus on the core UK business.

Alex Chesterman

The online car dealer launched operations in France and Germany in December 2021. However, it soon became apparent that operation costs were just too high, prompting a cost-cutting plan announced in June of this year. This included reducing head-count by 750 staff, ending subscription services and a sell-off of assets. The idea of withdrawing from Europe was mooted in early August, before being formally announced today.

READ: Cazoo to cut 750 jobs

READ: WhoCanFixMyCar’s servicing deal with Cazoo

The firm said in a statement that it intends to ‘commence an orderly wind down of operations’ in Germany and Spain and is in consultation with its employee representatives in France and Italy.

Having doubled losses to £243m in H1 2022, the Company is now targeting cash flow breakeven by the end of 2023, at which point the company expects to still have approximately £100m of cash on its balance sheet.

After thanking colleagues impacted by the decision, CEO Alex Chesterman commented: “The strong customer demand we are seeing in the core UK business gives us high confidence in the future opportunity and the decision we have taken today to withdraw from mainland Europe ensures that our balance sheet remains strong and that we have a plan which we believe no longer requires any further external funding.”



Published by Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

Why transitioning to EVs is a money maker for garages

One of main keys to profitability is because ICE-only parts are suffering from a higher inflation rate compared to their EV counterparts

Read More

Pothole damage sees alloy repairs jump 58% in two years

The country’s main political parties vow to fill in potholes as part of their 4 July election pledges

Read More

GSF opens 10,000 sq ft Birmingham branch; Crawley, Southgate to follow

Located close to Birmingham city centre, it features a fleet of five vans, two bikes, and two electric Tuk Tuk-style bikes

Read More

Skills gap “a timebomb” for aftermarket, says GSF CEO

Steve Horne said a lack of workers was stifling the market’s potential and increasing costs for motorists

Read More

Legal hand car washes “outnumbered” by illegal sites as £2.5m in fines handed out

Home Office data revealed that 87 hand car washes across the UK were fined some £2.5 million for ‘right to work’ offences in 2023

Read More

Go to comments

Your email address will not be published. Required fields are marked *