Motor dealer group Motorworld has decided to close its body and paint repair centre in Kidlington at the end of January.

The centre, in Langford Lane, is not taking on any more work after the end of this month and the 25 people who work at the site are to be found other jobs. Until recently it is understood the group had been considering a proposed new development for the bodyshop, but a spokesman told the Oxford Mail that achieving a realistic return from such a substantial investment would be unlikely.

She said: "The volatile nature of the business and changes taking place in the insurance industry were important considerations.

"Motorworld has explored a number of other options including the upgrade of its present facility, but none was able to offer a long-term solution, as predictions show that the market for accident repairs will become increasingly competitive."

She added: "Every effort will be made to identify alternative positions for the 25 staff employed, either within Motorworld or Oxford Swindon & Gloucester Co-operative Society, of which Motorworld is a division."

Motorworld's franchises include Volkswagen, Audi, Mitsubishi, Volvo and Hyundai. The group has also just taken over the Mazda franchise from the Sytner Group.