Car dealer group Nidd Vale will close its Peugeot dealership in Ilkley on December 23.
Managing director Neil Crossley told the local newspaper there will be a small number of compulsory redundancies at the dealership, but many members of the 13-strong staff have been offered alternative jobs in Nidd Vale's other businesses.
It also represents Vauxhall, Mazda, Seat and Saab in Harrogate and Vauxhall in Wetherby.
Crossley told the Ilkley Gazette: "There were requirements for significant investment in the facilities to meet manufacturer standards and these weren’t financially viable with a short lease remaining on the Ilkley premises."
The business has been in Nidd Vale's hands since it acquired the former Glovers Peugeot dealership in 2008.