* Pendragon to cut 1,800 jobs
* Inchcape falls to H1 loss, doesn't give layoffs number
* Shares in both companies fall
(Adds details on Inchcape's job losses, shares)
By Samantha Machado and Yadarisa Shabong
July 30 (Reuters) - British auto retailers Pendragon
and Inchcape plan to cut jobs as they battle mounting
losses due to weak demand, exacerbated by the fallout from the
COVID-19 pandemic.
Adding to the thousands of layoffs announced by companies
across Britain, Pendragon said on Thursday it would shut 15
loss-making stores and slash 1,800 jobs. Inchcape did not
specify how many employees would be affected.
Global lockdowns to tackle the pandemic have taken a heavy
toll on Britain's car dealers, which were already struggling
with uncertainty caused by the country's protracted exit from
the European Union.
Rival Lookers set out plans last month to lay off
1,500 employees and shut 12 more sites.
Inchcape shares tumbled 9.9% to 439.6 pence after it also
reported first-half a pretax loss of 188 million pounds ($245
million) compared with a profit a year earlier, largely due to
impairment charges.
The company, with operations in more than 32 international
markets, said its restructuring programme would cut costs by
more than 90 million pounds.
Pendragon, which operates the Evans Halshaw, Stratstone,
Quickco and Car Store brands, said its planned changes followed
a review that was started before the pandemic struck and would
cut annual costs by about 35 million pounds.
"The impact of COVID-19 has accelerated a review of the
Group's future operating model ... the Board has taken the
decision to introduce a more efficient operating model with
fewer stores and leaner support functions," it said.
Pendragon's shares were last down 1.1% at 7.98 pence.
In May, Pendragon reported underlying pretax losses of 2.3
million pounds for the first quarter.
British car production fell by more than 40% year-on-year in
the first half of 2020 to its lowest level 1954, according to an
industry body.
($1 = 0.7689 pounds)
(Reporting by Samantha Machado in Bengaluru; Editing by Vinay
Dwivedi and Mark Potter)