Car dealership Pendragon to lay off 1,800 workers, shut loss-making stores

(Reuters) - British auto retailer Pendragon Plc said on Thursday it would slash 1,800 jobs and close 15 loss-making stores, as the coronavirus crisis continues to hammer demand for cars.

"The impact of Covid-19 has accelerated a review of the Group's future operating model... the Board has taken the decision to introduce a more efficient operating model with fewer stores and leaner support functions," the company said.

The planned changes, which follow a review that was commenced before the pandemic, will cut annual costs by about 35 million pounds ($45.47 million), Pendragon said.

The company's move comes after rival Lookers set out plans last month to lay off 1,500 employees and shut 12 more sites.

British car production fell by more than an annual 40% in the first half of the year to its lowest level since 1954, according to an industry body.

($1 = 0.7697 pounds)

(Reporting by Samantha Machado in Bengaluru; Editing by Vinay Dwivedi)