By Matthew Legg Business editor

Last updated at 12:29, Monday, 08 September 2008

One of Cumbria’s biggest car dealers has been forced to axe jobs as auto sales drop to their lowest level in 40 years.

The News & Star understands that GK Group has made redundancies at its branches in Carlisle, Penrith, Lillyhall, near Workington, Dumfries and Stranraer.

It has been claimed by one former employee that more than 20 people may have been affected across the sites, but the company today refused to confirm the numbers involved.

Jobs have also been lost at the company’s sites in the East Midlands and South Yorkshire.

Among those laid off in Cumbria are workers with more 30 years service.

One former employee said: “We feel gutted about this.

“For people over 50-years-old to be given minimum money for 30 years loyalty is terrible.

“Some of the decisions are stupid, the company is losing some of its best people.”

Staff were given the news two weeks ago and told the state of the market was to blame.

In a statement, GK Group said: “The national economic conditions are tough and, in common with many others, GK Group is closely reviewing its cost base across its trading locations in the East Midlands, South Yorkshire, Cumbria and South West Scotland.

“This review includes a small number of redundancies.”

The news about GK Group comes as figures show new car sales have fallen to their lowest level since 1966.

Industry chiefs said nationally 63,225 new motors were sold in August, down 18.6 per cent on a year ago.

It was the worst August performance in 42 years, and means total sales for the year so far are down 3.8 per cent on 2007.

The credit crunch and the drop in consumer spending caused by rising inflation have been blamed.

GK Ford launched a cost cutting review earlier this year in response to the national economic slowdown.

The company is made up of the former CG Ford and Reid and Adams businesses.

First published at 11:47, Monday, 08 September 2008
Published by http://www.newsandstar.co.uk