Tough new manufacturer standards could force a thousand small dealers to shut up shop for good, an industry analyst warns.

Philip Wade, author of a new study of European car dealer networks, reveals set rules imposed as part of revised block exemption contracts are too much to bear for many privately-owned sites.

Wade says: “For a small dealer, the new investment can amount to a significant proportion of his profit for the year.”

“That could mean 1000 of the 3000 privately-owned single site franchises disappearing as manufacturers decide not to offer new sales agreements.” A number of manufacturers are only offering dealers sales contracts if they agree to relocate their sites or upgrade their showrooms. Wade says the new regulations are the last chance for manufacturers to impose dealer standards to support brand objectives in terms of image and customer service levels.