One of the best-known car dealerships in south Essex has lost its valuable Ford franchise, it was revealed today.

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 of the firm, which was set up in 1912.

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 is taking over the Ford franchise for the Southend area.

Redundancies cannot be ruled out while negotiations are taking place.

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

Richard Allan, Perrys' non-executive director, said today (Friday) the news was "unfortunate."

He said: "It is very regrettable because we have been Ford dealers in Southend for a very long time but it is part of Ford's national strategy.

"It is significantly reducing the number of owners of dealerships to around 100 across the country. Similar action has been taken in America.

"The idea is to create extra efficiency and a better chance of making a profit in a very tough industry."

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.

"It is no reflection on the performance, quality or ability of our business. It is an outstandingly successful company in every way. We have a very large market share in Southend and it is a place I hold dear in my heart, as I started out there.

"It is not possible to be in any sense concrete about redundancies. A new franchisee will need staff."

The franchise will be lost by the end of this year, but staff have had an inkling of what was to come for some time.

Mr Allan said: "Discussions over changes usually stretch over a period of years. Decisions like this are not made overnight and official statements cannot be released until negotiations are concluded."

Ford refused to comment on the decision to withdraw Perrys' franchise.

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