Mercedes-Benz UK boss of passenger cars Dermot Kelly has denied the company is planning to streamline its dealership network over the next year.

A number of Mercedes dealers believe a UK network review will see the number of outlets fall. DaimlerChrysler UK is thought to want retail partner businesses to be reduced by around a half.

Mr Kelly, denying at Birmingham motor show that such action was imminent, agreed there was an ongoing review.

“There is no plan at the moment for reductions and, if there were we would be speaking with the relevant dealerships before we made anything public,” he said.