Discussions were continuing yesterday over plans by Basildon-based Essex Ford to take over the franchise of Ford cars from Perrys.

The future for Perrys - which has garages at Rayleigh Weir, Kent Elms Corner and Southchurch Road in Southend - is now uncertain after the news was revealed to the 240-strong workforce.

Perrys bosses will now have to decide whether to find a new franchise with another brand of car or sell all or part of the business to Basildon-based Essex Ford, which plans to take over the Ford franchise for the Southend area.

Redundancies cannot be ruled out while negotiations are taking place.

Philip Maskell, Essex Ford Group chairman and managing director, said: "Essex Ford recognises it has responsibilities to maintain continuity and excellence of service to Southend customers.

"Perrys clearly has many excellent and loyal staff that we would ultimately seek to retain for the franchise.

He added that Essex Ford was exploring all options and relevant staffing levels.

He said: "Essex Ford has also been working on a greenfield relocation of the franchise and have two sites identified.

"Discussions with the Perry Group continue. Essex Ford is ultimately seeking to expand its Ford franchise operations and are also close to finalising a relocation plan for its main site in Basildon."

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

Richard Allan, Perry's non-executive director, said the news was "unfortunate."

Mr Allan, who started with Perry's in 1971 as Southend director, added: "Now, we can either re-franchise with another brand which suits us or sell all or part of the business to Essex Ford, the new franchisee responsible for this territory."

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