Fleets dependent on local dealers for servicing and repairs could be facing a major shortage of service outlets after it emerged that as many as 1,000 franchised dealers will close next year.

While some servicing work will be picked up by independent authorised service centres, there will be some areas of the country that could end up without a local service centre.

Motor retail experts at Grant Thornton said they believe there could be more than 1,000 franchised outlets closing next year.

Nigel Ruddock, national head of Grant Thornton automotive services, told delegates at a recent AM conference that he predicts the network of 5,200 franchised retail outlets in the UK could shrink to between 3,500 and 4,000.

He said: “This will be painful…

"There have been too many dealers making little to no profits for too long.

"There are too many dealers chasing too few customers.”

John Lewis, director general of the BVRLA, confirmed that decline in dealer numbers will hit fleets.

“This is one of the reasons we have been asking manufacturers to enlarge their network of authorised service centres,” he said.

The BVRLA is also calling on manufacturers to release more vehicle technical information to the repair market.

“Ideally, we will end up with a scenario where any vehicle owner, business or consumer, will have access to a local, low-cost authorised repairer,” said Mr Lewis.

However, there are growing fears that the recession may take bigger fish than just franchised dealers, with several carmakers desperately seeking government funds to prop them up.

General Motors, Ford and Chrysler’s latest call for US state aid failed last week.

“Chrysler is the most likely to go under,” said Mr Ruddock.

The failure of a major carmaker will cause concerns not only for ensuring vehicles already on the road can be serviced and repaired, but also over whether warranties will be respected.

This could cause problems for fleets heavily biased towards one manufacturer.

“GM must adopt Chapter 11 style precautions even if it doesn’t go into insolvency.

"There’s too much complexity with GM’s brands, it needs to shed six and focus on its core brands.

"This could mean that Saab will go,” added Mr Ruddock.