A NORTH west car dealer is bucking the trend with a £2m expansion plan to establish a presence in Manchester.

Hobin Group will start trading at the site on Bury New Road near Strangeways next month.

It has lain empty since the previous occupant, Warrington-based Caledonia Motor Holdings, went into administrative receivership in January.

The two-acre site will be Hobin Group's third - its others are in Bury and Preston.

Managing director David Hobin, 49, said he expects to have a workforce of 30 at the Manchester operation once it is fully up and running. It will feature showrooms for new SEAT vehicles and used cars.

News of Hobin Group's expansion comes days after Inchcape, which owns the Gilbert Lawton and Smith Knight Fay businesses in the north west, warned that worsening conditions in key markets would wipe out profit growth this year.

Earlier this month, Manchester dealership Horners Motor Group went bust and most of its 73 staff at showrooms in Manchester and Rochdale were made redundant.

July has also seen the country's biggest dealer, Pendragon, axe 500 jobs while Manchester-based Lookers said it too could not rule out redundancies and was reviewing all areas of its operation to cut costs. The consumer spending slowdown, credit crunch and soaring fuel prices have put the brakes on sales of new and used cars. Mr Hobin today shrugged off the gloom surrounding the sector by striking an upbeat note about his new operation.

"We've been looking for a suitable site in Manchester for three years and are looking forward to opening for business next month," he said.

"We are optimistic about our prospects. Customers are more discerning and looking for a deal all the time, but being a small group means we can easily control costs.

"Added to that, we have some new SEAT cars coming on to the market over the forthcoming months, such as new Ibiza models, which we believe will be very popular."

Mr Hobin launched the group with a showroom in Preston in 2003 and opened at Bell Lane, Bury, in July last year.

Hobin Group employs 44 people across the two sites, which turned over £18m in 2007. The Bury business contributed £5m of revenues.

This year, Mr Hobin is aiming for group sales of £36m.

He is eyeing other cities for expansion, including Chester and Leeds.

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