European Motor Holdings has completed its first step towards expanding with Audi in the West of England with the £1.7m acquisition of Swindon Audi.

The deal coincides with the sale by EMH of its Mill Audi dealership in Sunderland for £2.1m to Colebrook & Burgess, which already has four Audi dealerships in the North-east region.

“This fits in with our Audi market strategy,” says EMH chief executive Richard Palmer. “We are exiting the North-east to build our market in the West.”

EMH’s Audi operation in Chester is also expected to be sold, although Palmer would not comment on timescales. Swindon Audi was acquired from Goodyer Motor Company, the owner since 2002.

Audited accounts for its first 14 months of trading to December 28, 2003, show a pre-tax profit of £222,000.

EMH already has an Audi site in Tetbury and expects to announce further expansion in the area soon. “Things are moving along quickly,” says Palmer.