The boss of Pendragon, one of Britain’s biggest car dealers, is leaving less than three months into the job after clashing with the board over its focus on the used-car market.
Mark Herbert was appointed as chief executive on 1 April and tasked with carrying out a strategic review of the business in an effort to return it to profitability in a tough market.
But on Thursday the company, which trades under the Evans Halshaw, Stratstone and Car Store brands, said Herbert will leave “by mutual agreement” on 30 June.
“As a result of the change to the management team, it is envisaged that the strategic update originally scheduled for late September will now be postponed until the appointment of a new chief executive officer is concluded,” Pendragon said in the statement.
It is understood that Herbert, the former boss of Jardine Motors Group UK who most recently ran a pan-Asian retailer as part of Jardine Matheson, clashed with Pendragon’s board over strategy. Herbert’s background is in new cars and the franchised market, while the board wants to focus on used cars and online selling through its Car Store website.
Until a new chief executive is found, Martin Casha, the longstanding chief operating officer, and Mark Willis, the new chief financial officer who joined from Ten Entertainment in April, will run the business, reporting to Chris Chambers, the chairman.
Analysts at Liberum said: “At the time of appointment, it was clear that the new CEO’s role was not about a wholesale review of the strategy … We think it unlikely that a CEO from a listed peer would want to make the move, particularly without a mandate to review the whole strategy.”
Pendragon declined to say whether Herbert would receive a payoff. He joined without a probation period.
The firm’s performance has worsened due to falling prices in the used-car market. Two weeks ago, Pendragon shares crashed after it warned it would be “significantly loss-making” in the first half and predicted a small pre-tax loss for 2019 as a whole. Analysts had been expecting a profit of almost £35m.
Like other dealers, the company, which sells all the main marques, has been forced to slash used-car prices to shift excess stock. It has 177 franchised dealerships and has opened 32 stores that sell only used cars.
