Mercedes-Benz dealers have formally began their legal action against DaimlerChrysler UK.

On Friday afternoon legal proceedings were issued by Allen & Overy, the dealers' solicitors, and copies passed to Richards-Butler, solicitors for DaimlerChrysler.

“If there were ever any doubts about the seriousness and strength of feeling felt by UK Mercedes dealers - following the one-year termination notices received from DaimlerChrysler UK - then they can now be swept away,” said Alan Pulham, franchised dealer director of the Retail Motor Industry Federation (RMI).

Mr Pulham continued: “It is a great shame that it has come to this but, quite honestly, the dealers were left with no alternative. DaimlerChrysler UK refused to come to the table for a serious and constructive discussion, despite opportunities to do so.”

“It is vital for the future of the whole UK dealer system that this matter is resolved as soon as possible.”