The chief executive officer of Pendragon, the second largest motor retailer in the UK, is to leave after only three months in the role.

With the departure of Mark Herbert, executive directors Martin Casha (chief operating officer) and Mark Willis, (chief financial officer) will lead the business on a day to day basis, reporting to Chris Chambers, the chairman.

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Last month Pendragon published the results of its financial and operational review, warning of significant loss making in the first half of FY19.

The company attributes the forecast to a continued challenging market, citing the latest SMMT figures which reported a decline in new car registrations of 3.1% in 2019 and significant declines in used car valuations. Coupled with that, the company also stated that FY19 is expected to be impacted further by “certain internal operational challenges.”

According to reports from Sky News, analysts have suggested that Herbert’s departure may have been as a result of differing opinions over how best to revive the car business following a succession of profit warnings.

Herbert revealed losses at the company’s Car Store division would be £25m this year, up from an £11.9m loss in 2018. Shares in Pendragon fell 5% upon news of Herbert’s departure.

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According to Pendragon, as a result of the change to the management team, it is expected that the strategic update originally scheduled for late September will now be postponed until the appointment of a new chief executive officer is concluded.

Chris Chambers, chairman of Pendragon, said: “The board remains fully committed to realising the long-term strategy. In the nearer term, despite challenging market conditions and the costly stock reduction programme, our focus will remain on taking steps to improve the performance of the business as outlined in our recent financial and operational review.”

As a group Pendragon is responsible for some of the UK’s largest car dealers, including Evans Halshaw and Stratstone.