The expectation is that, in the face of falling sales (down by 22 per cent in 2017 as the overall market shrank by less than six per cent) Vauxhall plan to continue with a network of dealers closer to 200, a significant drop on the current, seemingly unsustainable, 326.
The French-owned company is to cancel contracts with all of its 326 showrooms in the UK.
Stephen Norman, MD of Vauxhall Motors, said: "The requirements of the industry going forward and the requirements of the brands Opel and Vauxhall ... would not require as many retail outlets as the brands now have".
He explained that he did not expect any job losses among the dealership workforce of between 11,000 to 12,000 as the showrooms affected would take on a different brand.
Vauxhall has the second largest number of dealerships in the United Kingdom after Ford, with 326.
It has not said how many sites could be axed.
He said while the network was profitable, he believed the new contracts being proposed to investors would boost their earnings and, at the same time, recognise the growing role of digital in the sales process.
Sales of new Vauxhall cars fell by 18% year-on-year in the first three months of 2018. An estimated 90% of new cars it sells in the United Kingdom are powered by diesel.
Brexit uncertainty has also been raised by the industry as undermining consumer confidence with people choosing to stick with their current auto rather than buy a new one.
Stephen Norman, Vauxhall's managing director, said: "Conditions in the motor industry are changing, the competition is much more ferocious today especially in the United Kingdom than it was five years ago and inevitably there are different methods of consumption of automotive products and services including online and digital".
Astra production has been cut by 25 per cent at Ellesmere Port despite, or perhaps because, PSA has committed to production there until 2021, but there's better news for Vauxhall Luton where Vivaro van production will increase as Luton also builds Peugeot and Citroen versions of the Vivaro.
VAUXHALL is to end contracts with its dealerships across the United Kingdom as the company battles falling sales and changing habits among auto buyers.