CONCEPT, the used vehicle retailer, has begun a strategic merger with troubled used car supermarket Carland. This will see the creation of a new group with a combined turnover of more than £250 million and more than 600 staff.

Concept will take on the stock and Carland's main five-acre site at Lakeside, Thurrock, plus another site yet to open in Enfield, both of which will carry the Concept name. But Concept has refused to reveal what plans it has in store for Carland's Sheffield site and the unopened site at Walsall.

The acquisition of the company, which is understood to have lost more than £20 million since its launch 18 months ago, follows the recent collapse of Carland's upmarket used car store Maxcar, which was launched a year ago in west London. Former chief executive John Tuke retired in June after Carland's owner, New York investor John Head, brought in former Nissan director Frank Banks to find a buyer.

Concept operates seven used car sites around the country, including its head office site in Cannock which was purchased from the receivers of Car Group late last year. Nick Morris, Concept's managing director, said: 'This is a great opportunity for both companies. There are clear synergies between the businesses and both will benefit from considerable economies of scale.'