CAR dealership Sherwoods has made a move into Teesside with its first major acquisition, The Northern Echo has learned.

Sherwoods, which operates two sites in the region, has acquired the assets of Patrick of Stockton Vauxhall, based on Preston Farm, for an undisclosed sum.

The business will trade as Sherwoods Stockton and dealer principal Simon MacConachie said jobs will be created as the site expands.

"This is our first proper acquisition. We will be looking to grow the business because we feel it has great potential. There will be new jobs created, but we can't say how many at this stage," he said.

Sherwoods has Vauxhall and Chevrolet dealerships in Darlington, and a Vauxhall dealership, in Northallerton, North Yorkshire. Together, both sites employ about 200 staff.

Mr MacConachie, son of managing director Alasdair MacConachie, ruled out plans for future acquisitions, to avoid growing too big, too soon in the challenging motor retail market.

"We believe in consolidated growth. There is no more planned expansion in the near future," he said.

"We are happy to remain a family dealership. We are never going to become a Reg Vardy of this world."

While Sunderland-based Reg Vardy expanded into a 100-dealership business, which was snapped up by larger rival Pendragon for £506m last year, other new and used car businesses in the region have collapsed under difficult trading conditions.

Last year, one of Darlington's oldest car dealers Williamson Motors, which had sites in Hartlepool and Spennymoor, went into receivership, with the loss of 85 jobs.

And earlier this year, North-East discount car retailer, CarShock, plunged into administration, with the loss of about 70 jobs. The group had sites across the region in Darlington, Sunderland, Middlesbrough, Hartlepool, Gateshead and Newcastle, and in Leeds.

Partrick Vauxhall was yesterday unable to comment on the sale of its Stockton business.

The firm still operates Patrick of Durham, based in Abbey Road, Pity Me.