According to fresh research by the National Franchised Dealers Association (NFDA), one arm of the Retail Motor Industry Federation (RMIF), almost a third of new car dealers are looking to sever ties with unprofitable manufacturers.

The franchise network was already known to be reeling from overbearing manufacturer standards requirements, but the extent of the pressure was previously unknown. Almost a quarter of car dealers have had to cut back on staff, with some taking further steps of selling off dealerships .

Sure Robinson, the director of the NFDA, said: Dealers told us that they are required to spend phenomenal sums on implementing standards that do not deliver profit back to the business, with one in ten spending in excess of £1 million in the last four years.

She continued: In a new car market down by more than 3 per cent on last year, it is vital that these findings are acknowledged as soon as possible. While dealers accept the need for showroom standards, they do question the logic of pretty signs and sofas that incur massive expense with no return. With the average dealer currently making just 0.8 per cent profit on every unit sold, every penny spent is critical. To make a financial outlay without any prospect of a return on investment would be considered commercial suicide in any business, and motor retail is no different.