Pearman Watlington & Co. Ltd. (PW's) on May 5, giving the company a 75 percent share of car sales in Bermuda.

Although the deal has not officially closed yet the 40 staff at PW's automobile division have been given notice that their jobs terminate on May 5.

Those who are 65 years of age or over will retire.

PW's Chief Executive Officer William Cox said notice had been given so as to "ease the transition'' when the division was sold. HWP has interviewed some of the fired workers for a position under the new owner, he said. He would not comment on whether some would permanently lose their jobs at PW's.

"The sale has not been closed yet,'' Mr. Cox said. "May 5 is the target time for closing. We are taking steps to protect our employees and smooth the transition. The merger is in the best long-term interest of the market. It will create economies of scale. We feel that with the sale we can render a level of service that Bermuda has never seen.'' However, PW customer Carlton Hunt feels he has been badly done by the sale. He opened a PW account two years ago when he purchased his Hyundai Accord from the company. He was told yesterday that the auto divison was no longer providing credit accounts. Mr. Hunt was told to go to HWP where he found out that the company was not giving out any new accounts, he said. He doesn`t have a credit or debit card.

"This is what happens when a company tries to monopolise the market," he said. "They try to cut out the small guy. It's not fair.'' In response, Mr. Cox said PW's created its account service at a time when credit cards were not widely available in Bermuda. Now that credit and debit cards were available it was no longer necessary for companies to maintain the service.

"In a business with low margins the cost of doing business on a charge account basis and of maintaining the credit facility is expensive,'' he said.

"... This is the way the rest of the world is doing business.'' With the sale, HWP buys PW's Fiat, Hyundai, Isuzu, Nissan and Volkswagen franchises. Also included in the sale is the Esso `Pit Stop' Service Station.

HWP, which purchased Ray Brothers' auto franchises and service garages last year, sells the Mazda, Subaru, Proton, Daewoo, Mitsubishi, Daihatsu, Honda, Suzuki, and Mercedes-Benz brands. HWP's motor division currently employs about 75 people.

Shareholders of HWP include General Manager John Bento, Chairman and UBP MP Irving Pearman, UBP MP David Dyer, James King, and Margaret Holmes. Field Nominees also holds 647,038 shares.

HWP Managing Director Don Mackenzie said he would comment on the pending purchase when it occurred.