Renault UK expects its relationship with Pendragon to "go from strength to strength", said commercial operations director Len Curran, responding to industry speculation.

AM has received a number of tip-offs from dealers in the Renault network, saying that the manufacturer was planning to terminate Pendragon’s 11 Renault sites.

Some dealers said they had received information giving this impression from within Renault UK but Curran is insistent there is no truth in the rumours.

By mutual agreement last year, he said, Renault UK and Pendragon agreed to close two “non-profit making sites” in Scotland: at Livingston, West Lothian, and Edinburgh east.

Curran said: “Pendragon is one of our top three partners and we have no intention of terminating any of the Renault franchises that the group holds.

“Our relationship with Pendragon is very strong and we work closely with the group, meeting senior management each quarter.

“We consider Pendragon a key partner for the future, and see our relationship going from strength to strength.”

Trevor Finn, Pendragon chief executive, said: "As there is absolutely no truth in these rumours, I wonder where people get the idea they are true."