The company has admitted that some consultations to assess job roles were taking place but insists they "aren't on a large scale".
AM contacted Pendragon earlier this week but the company would neither confirm nor deny mass redundancies at the business.
Dealer principals have been told not to speak to the press regarding the consultations.
Earlier this week several industry insiders claimed Pendragon's Evans Halshaw business would take the brunt of proposed job losses with 1,200 staff being let go, while Stratstone would lose 800 jobs in order to cut costs. The positions of receptionists, technicians and drivers were alleged to be affected most.
The rumours followed Pendragon's AGM last week when analyst Mike Allen, of Panmure Gordon gave a cautious welcome to news that its used car sales strategy was starting to pay dividends.