William Jacks is preparing to refranchise its Rover, Mini and MG dealership in Chiswick, London, bought last August for £1.6m.

John Adair, chief executive, said: “We are continuing to give every support we can to Rover while it is in BMW ownership.

“We are a big enough group to ride this out but I can understand the concern felt by owners of smaller dealerships who have been loyal to Rover.”

John Leek, chairman of All Electric, the Birmingham-based multi-franchised group, said a £1.5m new dealership in the city was completed recently.

“I estimate that about £500,000 of that went to meeting BMW/Rover corporate demands which included provision for new Mini.”

Mr Leek said he was disappointed BMW dealers were getting the car as All Electric had for 50 years represented various marques which became part of Rover.

“I do not though regard the investment as wasted as, if necessary, I am confident we could switch to another franchise,” he added.