THE AA is to launch its own car sales division in a joint venture with Inchcape, the world's largest automotive services group.

An AA-branded new and used car supply service will be launched in the first quarter of next year as part of the £4 million scheme. The AA will have a 70 per cent share of the company and the venture will also offer financing options and other motoring related products and services.

Inchcape will provide support services, including sourcing and refurbishment. The move by the AA is part of the wider campaign by its owner, Centrica, to expand the AA brand. It was revealed in September that AA Business Services was set to offer fleets a 'cradle to grave' service as part of a major restructuring.

In August, the AA completed the acquisition of Halford's for £5.75 million, which it is rebranding as AA Service Centres. The move is the latest signal of a range of suppliers jockeying for position as the European Commission prepares to announce its findings on the future of Block Exemption.