FRANCHISED dealerships are at the mercy of manufacturers amid the current storm surrounding UK car pricing, warns Perry Group's new finance director Neil French. He says that across the industry there is widespread acceptance that new car prices in the UK are higher than most other countries and a manufacturer wishing to snatch a large slice of the market could take drastic action.

'There's the possibility that one manufacturer will grasp the nettle and reduce its prices dramatically. It would then clean up in terms of market share and volume as a result squeezing margins even further,' said French, who has joined from Lex Service where he spent 10 years. He added 'I don't think there's anything we can do to prepare for this, except hope that the manufacturer would provide some degree of financial protection for the franchised dealer.'