Losses at Eden Motor Group mounted in 2023 due to supply issues impacting its new and used car sales.
The results for its parent, Eden Automotive Investments filed at Companies House saw pre-tax losses more than trebling to -£6.6m (2022: £1.86m) on turnover up 18.7% to £327.4m.
Eden Motor Group was formed 20 years ago by CEO Graeme Potts, and Vauxhall Motors in 2008, and has grown since launch to over 20 dealerships across the south, representing Hyundai, Mazda, MG, Peugeot and Vauxhall.
“The trading performance for the group was impacted during the year by limitations in the supply of new vehicles which created lead times that hadn’t been seen before and in turn this reduced the availability of used cars,” said Potts in accounts filed at Companies House.
“With new vehicle production being targeted at retail customers, this created a further limitation in the availability of used cars as fleets extended the lease periods due to both low utilisation of the vehicles over the pandemic and the new vehicle supply constraints and slowed the replacement cycle of the vehicles,” he added.
Potts also commented on the shortage of parts and its impact on aftersales.
“The conflict in Ukraine and continued supply chain issues affecting the OEN crated significant delays in the supply of replacement parts.
“This led to a back log in customer vehicle repairs and required significant investment into courtesy vehicles or order to meet the customers’ needs of mobility.”
