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The company, which employs more than 12,000 people in the UK, is ending the dealer contracts as it atempts to reorganise its network.

Vauxhall dealerships across the UK, including Sheffield, Doncaster and London could be at risk of closure as the struggling car firm axes branches.

There are also fears for the future of the Vauxhall factory at Ellesmere Port after the car firm announced its scaling back its dealerships.

Around 1600 dealers across the European network will be given two years’ notice from April 30 that the manufacturer is ending its business deal with them.

Vauxhall’s managing director, Stephen Norman, said: “Conditions in the motor industry are changing, the competition is much more ferocious today especially in the UK than it was five years ago and inevitably there are different methods of consumption of automotive products and services including online and digital.