Essex Ford is still in advanced negotiations with Perry Group to take over the Southend Ford franchise, its chairman revealed yesterday.

Perry's lost its valuable Ford franchise earlier this year and the future for its garages in Rayleigh Weir, Kent Elms Corner and Southchurch Road in Southend remains uncertain.

The move is part of nationwide restructuring of Ford which will see the ownership of around 800 Ford dealerships whittled down to about 100, in a bid to improve efficiency and increase profit.

Perry's has stressed the loss is no reflection on its performance or quality.

It must now decide whether to re-franchise with another brand or sell to Essex Ford.

Back in January, Richard Allan, Perry's non-executive director, said he was concerned about the differential pricing policy between Europe and Britain.

The internet is increasingly used by car buyers.

Philip Maskell, Essex Ford's chairman and managing director, said he could not comment further on the Perry negotiations.

He added: "It's been an exciting year for us in terms of expansion but also a challenging one in terms of what is happening in the car industry.

"We have two websites and believe we can run alongside the internet where people can gain information about the car they are looking for. People still want to feel, touch and see what they're buying."

Essex Ford's satellite showroom in Billericay which employs about 25 people will remain unaffected.

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