THE future of dozens of jobs at a York car dealer hangs in the balance.

Dixon Motors, one of the UK's biggest car dealerships - which has Renault and Nissan dealerships at Clifton Moor and a Kia dealership at Monk's Cross in York - has gone into administration after a fall in sales.

The Doncaster-based company has 46 franchises employing 1,400 people in Yorkshire, north Lincolnshire, Nottinghamshire and Lancashire.

Administrators BDO Stoy Hayward are now in talks with car manufacturers in a bid to save the dealerships.

City of York council leader Steve Galloway said the news was a matter of concern, but that he hoped other franchises would take over if Dixon's closed down.

He said: "This is a matter of concern, however it's inconceivable that a city the size of York will be the without the vehicle manufacturers and brands that Dixon sell such as Nissan, Renault and Kia.

"My expectation would be that there would be a number of companies looking to take over the franchises in the city. I hope that's what happens, that it's done seamlessly and that local jobs are preserved."

Dixons franchises include Citroen, Ford, Peugeot, Nissan, Renault and Vauxhall, selling and leasing cars.

The dealerships will continue to operate while the administrators assess whether the business can be saved.

Graham Newton, business restructuring partner at BDO Stoy Hayward, said: "Over recent years, the motor vehicle sector has become increasingly competitive and margins have tightened.

"This has had a knock-on effect on firms such as Dixon, which have experienced falling volumes, cost inflation and price deflation.

"We plan to carry out an immediate business review and are currently in discussions with car manufacturers to work to secure the future of the individual dealerships."

Back in November 2005, The Press reported that Dixon Motors went through a rough patch and announced 200 job losses.

The group employs 1,400 people in 29 locations in England, including Dixon Vauxhall in Flaxley Road, in Selby.

Selby Labour MP John Grogan said: "It looks like Dixon Motorcar dealership is a victim of the fierce competition in the motor vehicle sector of the economy. It is to be hoped that the administrators will be able to salvage the dealerships in Selby and York. I will be in touch with then to discuss their progress. "