It is transferring its Chrysler Jeep and Dodge showroom, Hatfields Sheffield, to a city-centre location, alongside its existing Jaguar franchise.
Due to redevelopment of the former site, which housed the showroom for 14 years, the Chrysler franchise will occupy a vacant showroom, adjacent to its Jaguar dealership.
A quarter of a million pounds has been invested in the showroom.
Capacity is for seven new cars and up to 20 used cars, compared to the old site, which had space for five new cars and 12 used cars.
The move will also provide more customer car parking spaces, which Gareth Williams, Hatfields managing director, said is crucial: “If there’s nowhere for customers to park, they just drive past.”
He added that the move would allow both businesses to develop.
“The service we give Jaguar customers will not be affected.
There is plenty of space on site for both operations.
“The two franchises are sufficiently different that they won’t be competing.
I expect them to complement each other,” Williams added.
The group added that it was at a stage where the dealership had outgrown the premises.
Hatfields has 12 sites across the north of England and west midlands. Six of them are Jaguar franchises.
Last year Hatfields refuted claims it was in trouble, after it closed two Hyundai sites in Oldham and Manchester.
It said all dealer groups went through changes in representation and insisted it remained “financially strong”.