Perrys garages are not so much local landmarks as institutions - but news that they have lost the Ford franchise has put their future in the balance.

GERALDINE O'CONNOR looks at the history of the company.

Harold Perry started the ball rolling in 1908 by opening his First car showroom in London.

Having friends in high places - particularly a brother as chairman of the Ford Motor Company - helped as Mr Perry was granted a Ford franchise and opened his first dealership in London in 1912.

By 1928 business was looking good and a showroom was also opened in London Road, Westcliff, followed by a landmark dealership at Kent Elms Corner in 1935.

During World War Two, most of the business switched to work supporting the war effort but afterwards the company continued to grow and by 1950, Hertfordshire-based Perrys had seven Ford dealerships.

In 1972, the company was floated on the London Stock Exchange under the name Harold Perry Motors which was later changed to Perry Group Plc.

At the same time Richard Allan joined Perry's as director and more showrooms and workshops were added at Hadleigh in 1973 and Rayleigh in 1978.

In 1985, Mr Allan became chief executive of the group and by the early 90s, Perrys was selling 19 different brands of cars including Citroen, Fiat, Honda, Hyundai, Jaguar, Land Rover MG, Rover, Lexus and Vauxhall.

Mr Allan said: "Over the years, selling cars has not really changed very much, if you compare it to the grocery trade, which has gone from corner shops to superstores. We are still using showrooms.

"The advent of the internet and the differential pricing between Europe and Britain is bringing the whole issue to a head.

"The franchise system - where it is only possible to buy selected brands from particular dealers - is due to be reviewed by Europe in 2002 and it may well be up for an overhaul then."

In 1993, Perrys opened its first Nationwide Crash Repair Centre and now there are 33 motor retailing outlets and 58 crash centres covering the whole country.

In 1998, Perrys recorded sales of £510 million and had a 3,500-strong workforce.

Mr Allan said: "More and more cars are being imported from Europe at very much lower prices. It is a concern to us. Some of the cars we hope to sell are now being purchased directly from Europe.

"It's a difficult situation. Cars are sold to dealers by manufacturers at a fixed price. The dealer's mark up is seldom more than ten per cent but Europe have different pricing structures and tax and exchange rates differ.

"The sale of new cars to retail customers has been very flat indeed, especially in the last three months."

Ford will withdraw Perrys franchise by the end of this year as part of a nationwide efficiency exercise.

Perrys now has two choices - it can either sell up to Essex Ford, the new franchisee for Southend, or look for another franchise to adopt.

Either way, the days for car showrooms could be numbered.

Mick aims for fifty years in the job

One of Perrys' longest-serving employees, Mick Smith, has notched up an incredible 48 years with the firm.

He began his six-year mechanic's apprenticeship in 1952 at the tender age of 15 and only took time out for two years of national service before returning to Perry's at Kent Elms Corner in Southend.

Mick, 63, remembers old favourites, Anglias, Prefects and Consuls - dubbed sit up and beg cars because of their shape - but is more used to working with Mondeos and Ford Focuses these days.

He said: "There have been huge changes in cars over the years. We went from using rod brakes to hydraulics and from side valves to overhead camshafts. It is all economy, efficiency and speed, and cars are a lot more comfortable now with adjustable seats and heating systems."

He added: "Perrys has been good to me over the years and that's the reason I have stayed for so long. Hopefully I'll get to see out 50 years at the same job which is something not many will be able to say."

Uncertain - Mick Smith, 48 years in the same job, wonders about the future

(Left) Starting out - Mick Smith, at 17, centre, gets to grips with a Zephyr Six in 1954

First picture: MIKE BELLENIE

Converted for the new archive on 19 November 2001. Some images and formatting may have been lost in the conversion.