MOTOR retailer Nidd Vale Group's £62 million General Motors division in Harrogate and Wetherby is being de-merged in a management buy-out.

The deal, for an undisclosed sum, has been led by Colin Hainstock, formerly managing director of the group's 150-employee General Motors division, who now becomes chairman and chief executive. There are no plans for job losses

Meanwhile Richard Jackson, chairman of Nidd Vale, retains control of the group's York-based Mercedes Benz division.

The businesses being hived off under Mr Hainstock include Nidd Vale Vauxhall and Nidd Vale Saab in Harrogate, Sandbeck Motors in Wetherby, and the GM aftersales and bodyshop facility on Hornbeam Park, Harrogate.

Mr Jackson and his former deputy group chief executive, Nigel Pullan, become non-executive directors and retain a minority stake in Nidd Vale.

Other members of his management team are: Simon Clark, sales director; Tony Watson, accounts director; Ray Gordon, service director; Ian Walker, parts director; and Paul Stokes, commercial director, who has joined the company from Dixon Motor Group.

Mr Hainstock said: "This is a tremendously exciting opportunity for us. We have a very experienced management team, which has worked together for many years."

Mr Jackson, who has run the company since he bought it in 1979, said: "This is a very emotional day for me. Nidd Vale has been a large part of my life for 24 years and I doubt if I would be selling the business now if I didn't have absolute confidence in Colin and his team."

Updated: 09:41 Tuesday, August 19, 2003