Inchcape overhaul in move to save £25m

The group, which sells new and used cars in 26 countries and employs 14,300 staff, hopes potential buyers will continue to employ staff at the sites earmarked for closure in the UK, Belgium, Singapore and Greece.

The restructuring, which will be at a cost of 18m, comes as Inchcape predicts a challenging market for new car sales next year, despite posting an 8.6 per cent increase in like-for-like sales in the nine months to September 30.

The group expects full-year trading to be ahead of its previous forecasts.

Andre Croix, chief executive of Inchcape, said: "We expect the continuation of an uneven global recovery and remain cautious regarding the short term industry outlook in some of our markets.

"Given our strong track record and the cost restructuring initiatives announced, we expect the group to trade effectively and improve its competitive position in these challenging trading conditions."

The group said the UK business performed slightly better in the three months to October 20, where the company saw an increase in used car sales and market share growth in luxury brands.

Tony Shepard, an analyst at Charles Stanley Research, said: "The group remains cautious regarding the short-term industry outlook in some of its markets but Inchcape is performing well and improving its competitive position."