The UK auto industry has been hit by declining vehicle sales amid uncertainties over tougher emissions regulations, the upcoming UK exit from the European Union and a move to sales of electric and hybrid vehicles.
The tightened conditions are likely to persist in the second half of the year, exacerbated by the continued decline in consumer confidence in light of broader political and economic uncertainty and the unpopularity of used cars, Lookers said.
Lookers, which has released information about a regulatory review by the UK financial inspectorate and the firing of its CFO, has plunged about 30 percent in recent weeks to more than a decade low and will lose more than half of its value this year.
Lookers, which has a market capitalization of £ 180 million ($ 226 million), did not provide details of an inspection investigation into its sales processes over the past three years.
Lookers, which sells vehicles for several manufacturers including Volkswagen, Ford and German BMW, is the latest company in the auto sector to issue a declining profit alert. Similar information was published earlier by Daimler and Pendragon.
UK car production fell 15.5 percent in May, for the twelfth straight month, mainly due to falling demand at home and abroad. New vehicle registrations in the UK also fell 5 percent in June.
