UK car dealers have been left in an “uncertain position” by Warranty Holdings‘ receivership, according to the chief executive of the Retail Motor Industry Federation (RMI), Matthew Carrington.

Warranty Holdings, which provided insurance products for the retail motor sector, is part of Oriel Investment Corporation (ORIC), a wholly-owned subsidiary of the Ford Motor Company.

Carrington said: “We were deeply concerned by the news. Warranty Holdings have announced that they will not underwrite any new business, but it is our hope that they will honour existing claims.

“The RMI intends to investigate this matter, and if possible assist members in finding alternative arrangements for their warranty coverage.”