ATS Euromaster plans service centre cull

ATS Euromaster has earmarked 86 service centres for possible closure – more than a third of its network – blaming overcapacity, increasing costs and sluggish growth.

The Michelin-owned company said the move was part of a wider review of its operating model.  

It currently operates a nationwide network of more than 235 tyre and service centres and recently announced plans to scale-up its mobile servicing business.  

It would not be drawn on which “non-profitable” sites are threatened with closure or how many jobs are under threat. However, Fleet News understands that up to 400 employees could be impacted.

In a statement to Fleet News, it said: “In a UK automotive aftermarket context of overcapacity, increasing costs and sluggish activity and growth, ATS Euromaster intends to review its current operating model and has put in place a proposal to close non profitable service centres. 

“Employees impacted by this proposal are under consultation. In the meantime, our priority is to provide them with the best level of support as possible.” 

It added: “This decision will not impact the high quality of services that we offer to our customers. 

“We intend that it enables us to concentrate our efforts on strategic levels for sustainable development, including services around ATS mobile capabilities and the shaping of a franchise model already successfully developed in several countries.”

Last month, ATS Euromaster announced it was scaling up its mobile offering with more than 125 mobile technicians across England, Scotland and Wales.

Opening up the service to retail customers for the first time, it also plans to continue scaling up its mobile operation into 2025, with many technicians already enrolled on its mobile training programme. 

The company also revealed in January, how inflationary pressures were driving up the cost of labour, parts, and materials, making service, maintenance and repair (SMR) more expensive.

Coming at a time when fleet budgets are already under pressure, it said it had already seen the impact of this as fleets squeeze maintenance programmes. 

At the time, Mark Holland, operations director at ATS Euromaster, explained: “Across the market fleets are not spending on SMR to the same level.

“Everyone seems to be tightening their belts with brakes given lower change rates, for example.”

In the latest full accounts filed by the company, for year-ending December 2023, it reported losses after taxation of £13.9 million compared to a loss of £20.6m the previous year (2022).

The turnover for the year was £165.5m compared with £147.1m in 2022. Gross margin fell slightly at 42.5% compared with 44.4% in 2022. 

Meanwhile, distribution and administration costs increased slightly to £86.3m and the operating loss for the year was £16.8m, compared with £19.8m in 2022.

Full-year figures for 2024 are not due to be filed until September of this year.