Job losses at ATS Euromaster as service centres closed

ATS Euromaster has closed more than a third of its network with the loss of more than 200 jobs as it makes changes to its operating model.

Fleet News revealed last month (February), the Michelin-owned company had earmarked 86 service centres for possible closure blaming overcapacity, increasing costs and sluggish growth.

That review concluded at the end of February and ATS Euromaster confirmed all 86 service centres have now ceased trading, with 248 employees made redundant to date.

A spokesperson told Fleet News: “Over 70% of impacted employees had secured alternative work during the consultation period and were staying in the industry - either redeploying into another role within Euromaster UK or moving to a new employer. 

“ATS Euromaster remains focused on serving customers through the remaining network of 152 service centres across the UK, alongside expanding mobile capabilities and the introduction of a franchise network later in 2025.”

When news of the possible network cull broke in February, ATS Euromaster explained that the changes would enable the business to concentrate its efforts on “strategic levels for sustainable development”, including its mobile service capabilities and the introduction of a franchise model, which has already been successfully developed in several countries.

At the start of the year, ATS Euromaster announced it was scaling up its mobile offering with more than 125 mobile technicians deployed 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.