Euro Car Parts could be about to wield the axe on thousands of jobs, in a move that has seen top management quit the company in protest.
According to Sky News, which itself is quoting an unknown source, founder Sukhpal Singh Ahluwalia, together with CEO Martin Gray and chief operating officer Steve Horne, have left the business as news of the job cuts came to light. Singh joined the board of owners LKQ in 2014 amid rumours he was setting up a rival factor business.
Sky says that ECP executives have locked horns with their counterparts at US-based LKQ over what the source described as a “swingeing cost-cutting programme.” This is aimed at saving the business millions of pounds annually and comes following a fall of 40% in LKQ’s share price in the last year.
ECP expanded at a phenomenal rate over the last few years, and was bought by LKQ in 2011. The parent company then acquired rival group Andrew Page in 2016. This attracted the attention of the UK’s Competition and Markets Authority, which decided that 10 Andrew Page stores should close.
The factor group has over 200 stores in the UK, and recently opened a new NDC in Tamworth, near to its existing warehouse units. The business employs over 12,000 people, one of the biggest automotive workforces in the UK.
LKQ did not comment to Sky News about the report.
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