BOSSES at Kidderminster’s Vauxhall dealership have moved to quash rumours they are set to leave the town.

Speculation has been rife about CMS Kidderminster’s future as it is set to vacate its current Churchfields showroom and garage as a result of a proposed housing development in the area.

Further concerns were raised nationally when Vauxhall was acquired from General Motors by PSA Group and dealer contracts were terminated.

But Graham Mezzone, Joint Managing Director at CMS Kidderminster, said they were in advanced discussions for a new base in the town, adding their trading performance had exceeded national expectations in the first quarter of 2018.

He said: “There has been speculation recently about the whereabouts of CMS Kidderminster when the New Road for the new housing developments in Churchfields is put into place off the existing roundabout.

“We of course have been aware of, and planning for this, for at least 10 years and have had therefore a considerable time to plan our relocation.

“We can announce that we are significantly well ahead in final negotiations to relocate premises and final steps are now being put into place. We are confident our existing and new customers will not be disappointed with our choice of location.”

He added: “The termination of contracts in the Vauxhall Franchise is a perfectly normal legal procedure now that Vauxhall and Opel have been acquired from General Motors by PSA group, a move we are greatly looking forward to and are excited about.

“Any acquiring company would require its new dealers to operate under their own dealer agreements and therefore all existing agreements with General Motors have to be terminated and new ones with PSA Group issued.

“We have already been advised in our termination letter that Vauxhall Motors (PSA) will be offering CMS Kidderminster a new and continuing contract.

“We hope this will take away any existing fears from our current and potential customers regarding this aspect.

“In our 31 years of operating in Kidderminster CMS has always tried to support the local community and has actively been involved in sponsoring sports, crime prevention, schools and local sites. We will continue to remain involved in this area.

“CMS Kidderminster is one of Vauxhall Motors largest suppliers from a single site delivering regularly in excess of 7500 new cars and vans to the retail and fleet markets.

“We are very proud of this achievement and again thank all our customers, retail and fleet for supporting us through these difficult economic times.”