The UK's Office of Fair Trading (OFT) upheld a complaint made by the RMI's National Franchised Dealers Association on behalf of its Peugeot dealer members.

Those dealers were said to have been misled into believing that they must conform with distinctive Peugeot 'blue box' corporate branding, which could cause problems for those with or considering multi-franchise businesses.

Peugeot has updated its position, and will now tell its dealers that the scheme is not mandatory, the RMI said.

A spokesman noted: "This is not just a win for Peugeot dealers, as it also puts in place a precedent that other manufacturers may have to follow. With the growing trend towards multi-franchising, this decision may have far-reaching positive benefits for dealers."