Major German Car Marketplace to Shut Down After Volkswagen Pulls Support: UK and German Jobs at Risk

Europe's automotive industry is reeling from a bombshell. Cinch, a titan of UK online car sales, and its German sister, MeinAuto.de, will close their virtual doors by 31 July 2025, after Volkswagen Financial Services (VWFS) pulled its financial lifeline.

This collapse puts over 100 UK jobs and potentially hundreds in Germany on the chopping block, exposing the car market's shaky foundations. Let's unpack the mess and what it means for workers and buyers.

Volkswagen Ditches Online Venture

The closures hinge on VWFS's decision to abandon its 78% stake in Cinch's parent, Constellation Automotive Group, and its backing of MeinAuto.de. VWFS is refocusing on core financing, leaving both platforms stranded.

Constellation, drowning in £1.2 billion ($1.5 billion) of debt, called Cinch 'no longer viable' without VWFS's cash. Volkswagen's own troubles, including a plan to cut 35,000 jobs in Germany by 2030 to save £12.4 billion ($16 billion), fuel this retreat, driven by weak demand in China and high costs.

The timing stings. Since its 2020 launch, Cinch became a UK household name, offering over 90,000 vehicles and challenging Auto Trader. MeinAuto.de played a similar role in Germany. Their downfall threatens to limit access to affordable used cars, hitting consumers hard as economic uncertainty looms.

Jobs Face Chopping Block

The human cost is grim. Cinch's 100-plus employees in Manchester and London are staring down at redundancy. In Germany, MeinAuto.de's workforce, likely in the hundreds, faces the same fate, though exact numbers are unclear. Constellation vowed to 'support affected employees,' but for many, this feels like an empty promise.

The UK's car sector is already battered, with Stellantis blaming low electric vehicle demand for closing a Luton van factory, risking 1,100 jobs.

Germany's auto industry is no better off. Volkswagen, hit by a 42% profit plunge in 2024 and competition from Chinese electric vehicle makers, has agreed to job cuts and a wage freeze. VWFS's withdrawal from Cinch and MeinAuto.de shows how corporate pivots can leave workers in the dust.

Market Feels Economic Squeeze

The closures spell trouble beyond jobs. The UK and German car markets are wobbling, with new car sales across the EU, EFTA, and UK dropping sharply since 2018. Cinch's exit could curb competition, inflating used car prices when inflation is already pinching budgets.

In Germany, MeinAuto.de's loss may further shake consumer confidence, especially as Volkswagen grapples with financial strain.

This debacle raises bigger questions about online car marketplaces. With brick-and-mortar dealerships battling rising costs and digital platforms struggling to profit, the industry may need a drastic overhaul. For now, the focus is on softening the blow for workers and customers caught in this upheaval.

Car Industry Nears Breaking Point

The collapse of Cinch and MeinAuto.de lays bare the automotive sector's fragility. Volkswagen's funding U-turn, driven by its own financial woes, has sparked a crisis i.e jeopardising jobs and shrinking consumer options.

As the UK and Germany navigate economic turbulence, these closures could drive up car prices and erode trust.

Governments and industry leaders must act swiftly to protect workers and steady the market at the earliest, or this skid could send Europe's car sector into a deeper tailspin.