THE Mercedes Benz and Daihatsu garage in Clapham is to close at the end of June unless new dealers step in to save it.

Mercedes Benz manufacturer Daimler Chrysler is axing dealerships across the UK in favour of larger Mercedes centres in major cities. The whole franchise is being split between two large vehicle traders - Pendragon Plc and Bramall Motor Group.

HL Gorner at Clapham will fall victim to the centralisation.

The garage, which employs 25 people, has been in the village since 1920 providing vital local employment. It has been owned by HL Gorner since 1986.

All the Mercedes staff have been guaranteed employment elsewhere, although it is not yet clear where they will transfer to, and it is hoped any redundancies can be avoided. However, the closure will obviously reduce the number of jobs available in Clapham.

Dealer principal Kevin Monk told the Herald: "There's a chance that another dealer might want it, but we don't know that.

"There's a lot of things that could happen in the motor trade, but at this moment in time the garage will be closing down at the end of June. It is a shame for Clapham."

Pendragon and Bramall have yet to announce where they are going to locate their dealerships, although it is likely to be in urban centres rather than rural areas.

Clapham is not expected to form any part of their long-term plans, said Susan Gorner, human resources director for HL Gorner.

She said: "We have spent a long time looking into various options including other franchises and basically the figures don't stack up and we have had to take a commercial decision, albeit a very, very sad one.

"We are a family business and we realise what the implications are or could be for the staff and it doesn't sit very well with us, but at the end of the day it is a business and we have to make a profit."

Clapham estate landowner Dr John Farrer said the impending closure was part of the fragmentation of the countryside.

"It will affect the village because people who come to leave their cars for the day probably contribute to the local economy and it will be a great gap in the employment of the village.

"However, somebody might want to buy it as a concern and it would be great if someone could take it over in some way."

Daimler Chrysler first announced plans to axe dealerships in December 2000 and local MP David Curry expressed concern in April 2001.

The garage was originally built by the agent for the Ingleborough estate, Claude Barton, as a wooden structure.

Mr Barton felt he faced an uncertain future after the First World War and he needed another source of income.

In the 1940s Mr Barton sold the garage to the Lamb family and from them it passed to ES Hartley, who sold to Gorners.