Mercedes-Benz Southwest, part of City Motor Holdings dealer group, is investing £2m rebuilding the third of its four dealerships on the South Coast for the German carmaker.

Once the Plymouth showroom is completed this June, the company will push ahead plans to redevelop its fourth outlet in Truro early next year.

“The current Transit Road site has not been a successful site for us, due to its location – it’s difficult for customers to get in and out of the site,” says a company spokeswoman. She says the new outlet is situated on a main road, which should remedy this problem.

Former corporate sales manager Mike Draycott has been promoted to dealer principal. He joined the business in March 2004, and has a 32-year history in retailing and fleet management for Jaguar, Honda, Range Rover and Rover brands.

Mercedes-Benz Southwest’s Exeter dealership was the first new-generation Mercedes dealership in the UK when it opened in January 2002.