AM100 dealer group expands with Volkswagen acquisition

A long-serving Volkswagen dealer partner has increased its portfolio with the brand following its takeover of an award-winning business from Marshall Motor Group.

Citygate Automotive has acquired the St Albans Volkswagen dealership from Marshall this month, three years after it also opened a Volkswagen Van Centre in the Herfordshire city.

The dealership won an AM Award for EV Dealership of the Year, recognising its improvement since Marshall acquired it in 2019 from Jardine Motors Group, when it was making a loss.

Marshall recently closed its Volkswagen dealerships at Horsham and Aylesbury - it still has 14 sites representing the German brand.

Citygate, which has partnered Volkswagen since its inception in 2006 in a management buyout from HR Owen by Jonathan Smith, said in a statement: "We’re proud to announce that Citygate has officially taken ownership of the Volkswagen retailer in St Albans.

"This marks a significant step in our growth, bringing us closer to our customers in the area and opening up new opportunities across the group.

"A warm welcome to the fantastic team joining us at Citygate St Albans, we’re thrilled to have you on board and excited for what we’ll achieve together. To our new customers, we can’t wait to meet you and look forward to supporting you on your Volkswagen journey."

Citygate Automotive now runs six Volkswagen dealerships and three Volkswagen Van Centres, plus three each for Skoda, Seat, Cupra and Kia.

Smith has expanded and diversified Citygate in recent years, launching a contract hire division, Citygate Leasing, in spring 2025 and acquiring digital marketing firm Auto.Works in 2024.

Earlier this year Volkswagen Group UK confirmed it was rolling back on earlier plans to switch its networks from franchised contracts to agency contracts.