County Garage, which operates the CG Ford dealerships in Carlisle, Penrith and Workington and the Gilligan Jaguar dealership in Carlisle, has announced an agreement in principle to sell the business.

County Garage celebrated its centenary last year and employs more than 200. It reported pre-tax loss of £0.3 million on turnover of £59.7 million in 2004.

The CG Ford business has been acquired by GK Group, which operates seven other Ford dealerships including Dumfries and Stranraer. The Gilligan Jaguar dealership will transfer to Lloyd Motors, whose headquarters are in Rosehill, Carlisle.