A CAR supermarket is set to double in size - with bosses claiming it will become the largest of its type in the North.

Motorpoint, Rosegrove Lane, Burnley, is set to double in size after winning planning permission.

Car manufacturers such as Honda, Nissan and Toyota have slashed production due to a lack of demand amid the global financial crisis.

But Motorpoint bosses said they felt they were benefiting from the effects of the credit crunch as people looked for discounted cars.

The company has been granted permission to turn its existing four-and-a-half-acre site to almost 10 acres.

Work is due to begin in early February on transforming the former Cloverbrook textile factory in nearby Gannow Lane ready for use in mid-March. As part of this process, one of the two Cloverbrook buildings will be demolished.

Jon Grace, general manager at Motorpoint Burnley, said: “We are very pleased with trade at the moment and business is better because of the credit crunch.

“It’s the same as the discount supermarkets because they are the ones people are turning to.

“As a company we have a lot of buying power so can offer cars at cheaper prices and that’s what is bringing people in.”

Motorpoint is currently selling in excess of 7,500 vehicles a year from the Burnley site, although it expects this number to grow by at least 10-15 per cent over the coming year.

When complete, the buildings will house Motorpoint Burnley’s vehicle preparation unit, including a dozen workshop and valeting bays, together with a storage area for vehicle deliveries.

It could also mean that the current 80-strong workforce could be increased although Mr Grace said it was unclear at this stage how many staff would be taken on.

Mr Grace said that the effects of the credit crunch had to led more people to look for smaller cars such as Ford Fiestas, but he claimed that larger models such as Ford Mondeos and Vauxhall Vectras were still selling just as well.