Moray Peugeot and MG Rover dealer Alan Milne has announced plans to drop the MGR franchise in the New Year, but says it intends to continue supplying new MGR cars by sourcing them from other franchised dealers in the area.

The business, which also holds the Peugeot franchise has been an MGR retailer since 1995. Customers will still be offered a full service back-up for MGR cars.

“Just because we are giving up our MG Rover new car sales franchise does not mean we are turning our back on the marque,” says managing director Steven Milne. “We will concentrate on Peugeot, but will continue to service and repair MG Rover products as an approved service provider and sell new models by getting them from other dealers.”

Alan Milne is investing £1.5m in a new building at Elgin’s Linkwood Industrial Estate. Its current Elgin site has been sold to a supermarket chain, while the long-established retail business expects to move into the new complex by late 2005.

“It’s an exciting time for us,” says Milne. “Construction will be under way by summer and this time next year we should be ready to move into our new site with a full Peugeot main dealer franchise for Moray.

“We’re also planning to secure an approved service and parts agreement with a third marque once we’ve moved in,” he adds.