A row has broken out in Scotland over the handling of DaimlerChrysler's market area review after it handed the western territory to Reg Vardy.

Glen Henderson, chairman and managing director of the Mercedes-Benz dealership in Ayr, one of the areas affected by the move, has sent a letter of complaint to Dermot Kelly, Mercedes-Benz UK director of passenger cars.

He claims comments by Sir Peter Vardy in Automotive Management (October 12) that Reg Vardy would be “responsible for the whole of the West of Scotland” were misleading. However, Mr Henderson, who also questioned Sir Peter's intention to open talks with his dealer group, would not expand this view.

Despite the anger over the decision, DaimlerChrysler confirmed that Reg Vardy had been awarded the West of Scotland territory.

Talks are scheduled to take place between Sir Peter and Mr Henderson before the end of the month – the timetable by which outgoing Mercedes dealers must choose their exit date. Mr Henderson declined to say when he intended to hand over the franchise, nor what his plans were for the Mercedes dealership.