MERCEDES-Benz dealers are seeking legal advice on plans to reorganise the dealer network which could see nearly half of them lose their franchises. Around 150 dealer representatives met at the National Motorcycle Museum, Birmingham, last week to discuss their next move after they were given 12 months' notice to quit by Mercedes-Benz.

Over the next two years the company will introduce a new sales network including 'Mercedes-Benz Experience Centres' in the metropolitan areas of London, Birmingham and Manchester. These will be owned by the manufacturer, and supplemented across the country by a network of Market Area Concepts (MACs) each featuring main dealers, satellites, service stations and high street retail outlets.

Alan Pulham, franchised dealer director of the Retail Motor Industry Federation, who attended the meeting, said: 'There was a united consensus that they should seek legal opinion on the validity of what Mercedes dons, and assuming there is reason to do so, they will take action.' More than 150 people representing 90% of the Mercedes dealer network attended the meeting.