Wed, 02 Sep 2026 | BUSINESS NEWS
Washington-based car dealership Sherwoods Motor Group is exploring acquisitions in 2026 after reporting a significant increase in turnover last year. The group, which has dealerships across Tyneside, Wearside and County Durham, saw a 28 per cent increase in turnover to £136.5 million.
Operating profit, meanwhile, grew by 77 per cent to a record £3.6 million as the group generated some of its best-ever figures for used vehicle and fleet sales. The firm, which works with brands including Citroen, Fiat, Peugeot, Suzuki and Izuzu, saw its headcount fall slightly to 152 during the year, although its wage bill increased.
Sherwoods’ growth during 2025 came despite the company not adding any additional sites and in the face of significant headwinds linked to the cost of living, general inflation, persistent political unrest and “the difficulties associated with the ZEV [Zero Emission Vehicle] mandate”.
The group’s directors highlighted a number of potential challenges that could persist over the coming year, but added that the business was well placed to grow during 2026.
They stated: “We know 2026 is going to be tough with continued pressure on costs, interest rates still high, customer uncertainty and alike but we have a strong, well-performing business and a robust balance sheet and will be more than able to ride out any storms.”
“We also will be looking for further opportunities to grow our business both in terms of additional franchise outlets and if the right opportunity arises in 2026 and we would by this time next year like to be able to report a new site to the group.”
The wider automotive industry has been impacted over recent years by the switch to electric vehicles (EVs), in addition to wider economic challenges in the UK and worldwide, which have affected sales.
Manufacturers and dealers have raised issues with government rules on increasing EV sales, with government ministers recently hinting that legislation could be relaxed.
The Society of Motor Manufacturers and Traders (SMMT) has reported an 11 per cent year-on-year fall in the number of vehicles being produced in the UK, a decline largely attributed to a drop in car exports.
In July 2026, electrified models accounted for more than four in 10 cars built, up from approximately three in 10 a year earlier.
SMMT Chief Executive Mike Hawes commented: “July’s figures underline the intense pressure under which UK vehicle manufacturers are currently operating. Although the negative performance is exacerbated by shutdowns and model changeovers, it is being compounded by weaker overseas demand and fierce global competition.”
“The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles.”
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