ARRIVA has denied claims that it is planning to sell its franchised dealership and car hire divisions. The transport giant revealed last week that it had put Arriva Automotive Solutions back on the market, having aborted its first attempt to sell the contract hire and fleet management company last December.

The rationale behind its latest move was a commercial decision to focus on the group's core bus business across Europe. This prompted analysts to question the long term fit of Arriva Motor Retailing within the group, but a spokesman for the company said there were no plans to sell it.

He attributed the speculation to a 'never say never' answer given by chief executive Bob Davies when he was asked whether the group's dealerships were the next asset up for disposal. But Davies also emphasised in Arriva's results presentation how well its franchises had performed during the last year, increasing their pre-tax profit to £10m (£9.4m) in a difficult market, and suggested the company may even expand its 40-strong franchise network.