Vauxhall has the second largest number of dealerships in the United Kingdom after Ford, with 326, but has seen sales tumble by more than 22% from 250,955 in 2016 to 195,137 in 2017, according to figures from the Society of Motor Manufacturers and Traders (SMMT). Those new franchise deals and the accompanying contract terminations will then take effect from 30th April 2020.
But he declined to say exactly how many sites he expected to be axed among the 326 now operating.
Surprisingly, Norman doesn't think jobs will be threatened, despite the possibility of some dealers closing: 'I am not expecting any of these people's jobs to be threatened, ' he said.
Norman said that dealers offered new contracts would be chosen because they rank highly for profitability, "including used vehicle sales and after sales, as well as customer satisfaction".
The industry has blamed confusion over what the future holds for diesels as the government has indicated plans to rid the UK's roads of both petrol and diesel cars by 2040.
When PSA acquired Vauxhall previous year from GM, it was clear there would need to be big changes to make the new group profitable, and those changes are already starting to happen.
Brexit uncertainty has also been raised by the industry as undermining consumer confidence with people choosing to stick with their current vehicle rather than buy a new one.
The move was confirmed by Vauxhall boss Stephen Norman who said that the company is to give its network of 326 dealers run by 93 groups two years notice on April 30th this year.
He told the Press Association: "We will probably lose a few retailers", but denied reports that a third could be cut.
Vauxhall's European sister company Opel is also shutting down dealerships as it tries to adapt to customers visiting vehicle dealers less.
People are more likely to to research cars online now and less likely to come in person to discuss the different models.
No doubt Vauxhall will be keen to retain the profitable dealers and drop those whose performance is marginal, and they really don't need so many dealers to offer a proper service to customers.