Online used-car retailer Cazoo has announced that it will pull out of Continental Europe in a bid to save cash and become a profitable business.
It intends to begin an “orderly wind down” of German and Spanish operations and is currently in discussions with representatives in France and Italy. UK operations will continue, however.
Following a month-long review of its business on the continent, the firm anticipates that the move will save more than £100 million – including winding-down costs – and that it will accelerate its progress towards profitability.
European business accounted for less than 10% of Cazoo’s revenues during the first half of 2022.
Cazoo will now focus entirely on the UK, where its retail sales were up by more than 100% year on year in July and August. Cazoo is targeting a market share of 5% or more in the UK.
Founder and CEO Alex Chesterman said: “Given our target of reaching profitability by the end of next year, we've taken the tough decision to focus solely on the huge UK used car market, worth over £100 billion annually.
“I would like to thank all our colleagues in the EU who are impacted by this decision, and we will of course look to support them in every way possible."
Chesterman followed: The strong customer demand we're 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."
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Pull out of Europe whilst focusing in the UK, someone at Autocar needs a Geography lesson.
Considering the article refers to "Continental Europe", "mainland Europe" and "the EU", it's factually correct. Be correct yourself if you're going to be antagonistic.