Group 1 has signed an agreement with Chinese carmaker Geely to represent the brand at three new locations.
In a note accompanying its Q1 results it said it was also evaluating representation with two additional Chinese OEMs in the UK.
Group 1 reported record quarterly UK gross profits of $230.6m (£170m), a 6.3% year-on-year increase, driven by double digit, like-for-like parts, service and F&I growth.
The move follows an earlier raft of job cuts and site closures to drive profitability at the group.
“The UK performed well in the first quarter of 2026,” said Daryl Kenningham, Group 1’s President and chief executive officer.
“Our UK business generated record revenues across nearly all major business lines and achieved record gross profit in used vehicles and parts and service.
But Kenningham added: “The broader macro environment remains dynamic and challenging, with persistently high interest rates and elevated vehicle and gasoline prices weighing on affordability.
“To address these challenges, we have initiated several cost actions in the US and UK, including staffing reductions and discretionary expense reductions across our business.”
During the current quarter, as part of Volkswagen Group’s Ideal Network Plan, Group 1 acquired one Skoda and two Volkswagen dealerships in the UK.
