NORTH-EAST car dealership Reg Vardy is building up its business with another multi-million pound investment.

The Wearside group is on course to operate out of at least 100 outlets by the end of next year after buying seven new sites.

The acquisitions, worth £10.9m, bring the total number of dealerships owned by the company to 77.

Vardy said it had acquired two Volkswagen dealerships in the West Midlands, three Ford outlets in the west of Scotland, and a Jaguar and Land Rover dealership in Edinburgh.

The group said the combined turnover of the seven new outlets was £110.4m based on recent figures - a performance which the group believes it can increase during the next three years to match its current portfolio.

The new operations in the West Midlands - in Stafford and Wolverhampton - have been renamed to become part of its Trust brand of Volkswagen dealerships in the area.

The name, which was acquired by Vardy in 1998 when it bought the Trust Motor Company, was relaunched in February with the acquisition of a Volkswagen dealership in Stourbridge.

Chief executive Sir Peter Vardy said the group was confident of exceeding its target by the end of next year, with plans under way to add more outlets in Scotland, the West Midlands and Yorkshire.

Describing the deal as absolutely fantastic, Sir Peter said: "The industry is having a good time of it at the moment. Cars continue to be cheap, funding continues to be cheap, making cars more affordable than they have ever been and the business is in good shape.

"The bigger groups are going to get bigger and the smaller ones are going to start to feel the squeeze a bit, so there are a lot of private companies willing to sell."

Describing the state of the sector as conducive to consolidation, he said: "As one with strong balance sheets and an appetite for growth, we are in a good position to take advantage."