General Motors is poised to take responsibility for Cadillac and Corvette in-house in the UK in a move that could eventually see Pendragon lose solus distributorship.

However, the carmaker is playing down the changes, saying it is still in talks with partners Kroymans, Cadillac’s European importer, and Pendragon.

Pendragon was appointed in late-2004 as the UK’s only Cadillac and Corvette retail group. It originally planned to build 18 ‘Experience centres’ within three years and quickly established 12, but last year suffered a £3.5m loss from the operation and has this year closed two sites citing slow sales.

Volumes in the UK have been disappointing. Expectations had been to sell more than 4,000 units after three years, but last year Pendragon sold just 400 Cadillacs. So far this year it has sold 32 cars.

GM had already said that it would bring the fleet sales operation in-house this month. Now it appears other functions, including sales and marketing, may be brought within the GM fold.

GM is also expected to establish a premium group of Cadillac, Corvette, Saab and Hummer for the UK.