Car dealers left with unmarketable vehicles following the collapse of Tata's former import company are being urged to contact the Retail Motor Industry Federation (RMI)'s legal department.

Bridlington-based Motor Vehicle Importers (MVI), the importers of Tata cars to the UK, have gone into liquidation. The demise came in the aftermath of the announcement of a new distribution deal between the Indian carmaker and MG Rover.

MVI's collapse has left dealers not only with cars they cannot sell due to warranty problems, but also facing legal action for the return of the vehicles from the car owners, MVI Financial Services. And huge bills when and if MVIFS disposes of them.

Franchised dealer director at the RMI Alan Pulham says: “MVI contacted their dealers and offered vehicles for free, the proviso being that if they were unsold after six months, MVI would take them back and pay the stocking charges.”

MVIFS has contacted the dealers informing them they intend to sell them at auction and then sue the dealers for the difference between the price they obtain there and the sum they would get through normal retailing.

“This could amount to thousands of pounds,” says Pulham.