Current Volvo dealership arrangements have run from 1997 and end on December 31, 2001, when the changes will come into effect. The number of sites will drop from 170 to 150 and the number of owners fall from 70 to 58, in the move.
A spokesman for the firm said: 'The representation review has taken account of our new model plans, dealer profitability, the future of block exemption and the need to offer outstanding customer service.
'The plans have been developed in close consultation with our colleagues at Jaguar and Land Rover, so that where we need representation, we can take into account our strongest Premier Automotive Group partners.'
Mercedes-Benz denied it was about to announce cuts to its dealer network, but a spokesman said: 'We are looking longer term at the way we sell cars in the UK.'