Twenty privately-owned UK dealer groups are banding together to create a new joint venture company and buying group called Retail Automotive Alliance Ltd (RAA).

Chief executive of the new company is Paul Knight, formerly finance director of Ford of Britain. He says: "Our core strategy is to work with leading suppliers to establish premium supplier status with the RAA on a whole range of key goods and services.

"It's important to state that we are seeking a win-win relationship with our suppliers as in order to compete with the large groups we need to improve cost effectiveness to increase sales and margins. That way the supplier also benefits from the relationship through increased volume and market share."

The inaugural chairman is Philip Maskell, of the Essex Ford Group.

RAA member companies cover the UK from north-east Scotland to Cornwall and hold franchises for Citroen, Fiat, Ford, Honda, Iveco, Kia, Mazda, Mitsubishi, Peugeot, Rover, Seat, Skoda, Subaru and Toyota.

RAA members will continue to control their own businesses.

The participating businesses are:

1 – Dunfermline Autocentre – North East Scotland
2 – Peoples – Edinburgh & Liverpool
3 – Patterson Ford - Newcastle
4 – Skipton Ford – North Yorkshire/ Isle of Man
5 – Gordons – Bolton/ Wigan
6 – OMC Ford – Oldham/ Rochdale
7 – TC Harrison – Derby/ Peterborough
8 – GK Group – Notts/ Derbyshire/ West Scotland
9 – Furrows – Shrewesbury/ Telford
10 – Sandicliffe – Leicester/ Notinghamshire
11 – Busseys – East Anglia/ Norwich
12 – Days – South Wales
13 – Brooklyn – Redditch/ Worcester/ Gloucester
14 – EMG Group – East Anglia/ Cambridge
15 – Gates Group – Harlow/ Stevenage
16 – Sky Ford - Hertfordshire
17 – Essex Ford Group – South Essex
18 – Lifestyle Ford – Kent/ East Sussex/ Surrey
19 – Hendy Group – Hampshire/ West Sussex
20 – Vospers – Devon/ Cornwall