European Motor Holdings has questioned the legality of the 12-month Mercedes termination notices issued by DaimlerChrysler UK.
EMH chief executive Richard Palmer called the decision extraordinary and said: “We were informed in January that DaimlerChrysler wished to operate all Mercedes-Benz dealerships in the London area itself. It is questionable whether the 12-month notice of termination is legal.
“We control some key strategic locations including a valuable freehold property in Park Royal and the board is currently considering a number of options.”
The High Court will give a ruling on the terminations in mid-July. A judge at an interim hearing said that if dealers lost, they would have to pay DCUK's legal costs.
All dealers' grievances must be dealt with in a group action.