LUXURY car maker Mercedes has put the brakes on speculation that it is axing 40 per cent of its dealership network in the UK next year.
An article in a national Sunday newspaper claimed Mercedes managers visited dealership bosses last week to tell them their franchises were being axed.
It said that out of 156 dealerships in Britain, the owners of 63 had been given just 12 months, half the usual notice period, to look for agreements with other manufacturers.
A spokesman for East Lancashire Mercedes franchise, Blackburn-based Westwood, said it was aware of the closure rumours but had not been visited. "It most definitely does not effect us," he said. "It's business as usual."
A Mercedes spokesman said: "The piece was pure speculation and we do not comment on speculation.
"It is true to say that in the longer term we are looking at how we retail cars in the UK in view of how successful we are. This year will be another record year for us. We expect to have sold 63,400 cars by the end of the year."
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