Volvo is to cut the size of its dealer network in preparation for changes to Block Exemption in 2002.

Current Volvo dealership arrangements have run from 1997 and end on December 31, 2001 when the changes will come into effect, with a reduction in sites from 170 to 150 and the number of owners fall from 70 to 58.

A Volvo spokesman said: "The representation review has taken account of our new model plans, dealer profitability, the future of block exemption and the need to offer outstanding customer service.

"The plans have been developed in close consultation with our colleagues at Jaguar and Land Rover, so that where we need representation we can take into account our strongest Premier Automotive Group partners."