Caledonia Motor Company is holding talks with Peugeot about the future of its Liverpool dealership, which the manufacturer is believed to want to control within its own Robins & Day network.

Simon Gardner, the Caledonia chief executive, did not return calls to AM but a Peugeot spokesman says: “We are talking to Caledonia. Nothing has yet been agreed and I am unable to comment further.” He declined to say whether Peugeot is dissatisfied with Caledonia’s performance.

The Liverpool outlet is the final Caledonia site to represent Peugeot – the group previously held the franchise at Bootle and St Helens. Without statements from either company, it was unclear whether Peugeot believes Robins & Day could boost sales in the Liverpool area, or if Caledonia wants to give up the franchise.

In the AM100 published last month, Robins & Day was at 15, with 38 dealerships and a turnover of £512m (down from 2005’s £575m). Robins & Day is the third largest UK manufacturer-owned network by turnover, behind DaimlerChrysler Retail and Ford Retail.

Caledonia, based in Warrington, has an estimated £145m turnover (down £10m compared with last year) and 12 outlets (six Fiat, three Alfa Romeo, two Citroën and one Peugeot). It is at joint 64 in the AM100, up from 70 last year.

The group was formed as a management buy-out from the Barclay Brothers, led by Paul Batty, Caledonia’s chairman, who used to run the business previously.