A new car dealership in York is opening its doors today, marking the return of two leading car brands to the city.

SG Petch, which has moved into the Monks Cross premises vacated when Dixon Motors closed down last year, holds the franchise for Fiat and Kia.

The opening is timed to coincide with the launch of the Fiat 500, which has just been named European Car Of The Year 2008.

The arrival of SG Petch, a family firm based in the North-East, is welcome news for the motor trade in York. The collapse of Dixon meant the loss of dealerships for Nissan, Renault and Kia, and with them went more than 60 jobs.

Glenn Boyes, general manager of the SG Petch dealership, said: "I can see the arrival of SG Petch benefiting trade as a whole, not just the motor trade, but retail in general in York. There hasn't been a Fiat dealership for several years. It is certainly a very exciting time for us."

Eighteen positions have been created at the dealership, and staff have been working against the clock to prepare the premises after the Fiat franchise agreement was finally agreed last Wednesday.

Initially, there will be a shared showroom for the Kia and Fiat models, but plans have been drawn up for separate showroom in the near future.

"I think the two brands sit very well together because there is very little crossover between them. Kia is renowned for its 4x4 vehicles, whereas Fiat is better known for smaller cars like the Punto and now the 500," Glenn said.

"It is a blank canvas here. We have a new team who are very excited about the venture and there is a great spirit about the place."

Glenn, 52, has been on the motors scene in York since 1984, when he became a sales executive for Parish's, the former British Leyland dealership in York. He went on to work for the Happy Driver Nissan dealership in the city and for JCT 600 and Dixon in West Yorkshire before returning to be general manager for the former D C Cook Fiat and Toyota dealership in Lawrence Street. For the past eight years he has been general manger for De Vries Honda in York.

The launch of the Fiat 500 has been timed to be exactly 500 hours from the start of the New Year and will be marked at the showroom this evening at 6pm.

"It is an iconic car, very cute, and it captures that nostalgia for Italian styling," said Glenn, who lives in Haxby with his wife, Debbie. The couple have three children - Jonathan 23, who is a car sales executive with BMW, Amy, 21, a professional dancer who recently won the TV series Dirty Dancing, and Helen, 18, a trainee legal secretary in York.