Graeme Potts has been appointed managing director at Inchcape UK and Europe. He will take up the newly-created position, which also includes a place on the board of Inchcape plc as executive director, on Tuesday.

Potts was widely tipped to return to the motor retail sector after leaving his role as group managing director of RAC Motoring Services in January. The former Reg Vardy chief executive - he spent 16 years with the dealer group - will focus on expanding Inchcape's specialist retail portfolio in the UK. Key partners include Toyota, Subaru, Jaguar and Land Rover.

Reporting to Inchcape group chief executive Peter Johnson, Potts will also assume responsibility for the company's business services growth strategy in the UK and mainland Europe and the Ferrari/Maserati import operations.

“Graeme brings to Inchcape proven success in both automotive services and retail and is ideally placed to head up our UK and European expansion plans,” says Johnson.

Inchcape posted record interim profits last month of £9.8m - up £700,000 - on turnover of £1.8bn.