VW, with a similar sales volume, manage very well with around 200 dealers, although Ford - the UK's biggest seller - has around 500.
Tim Rose, of Automotive Management, which produced the report, said: "Vauxhall dealers have told us they will be forced to make sales, workshop and administrative staff redundant as part of this cull by the vehicle maker".
Vauxhall has terminated the contract with its entire 326 United Kingdom dealer network as it looks to trim its outlets and seeks profitability as part of the PSA Group. The company now has 93 different retailers operating at 326 locations across the country.
As more drivers avoid showrooms and buy new cars from online brokers, Vauxhall and Opel, its sister company, are to reorganise their dealer network.
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Britain's motor industry has been hit by a slump in sales for the past year or so that has become particularly acute since the start of 2018.
PSA has tasked him with turning around a United Kingdom market that saw sales fall more than a fifth a year ago, as consumers curbed their spending in the wake of Brexit-linked price rises in the economy.
The news of a consolidation of the extensive Vauxhall UK dealer network is another part of this process and it's likely that vehicle buyers will see Vauxhall dealers sharing locations with their Peugeot, Citroen and DS equivalents in 2020 and beyond.
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.
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The company will give two years notice, from the end of this month.
The move forms part of a Europe-wide effort by the new owner of the Opel and Vauxhall brands, PSA, to bolster sales and customer satisfaction while cutting costs, Vauxhall said.
'The majority of retailers who are now with us will remain, ' Vauxhall managing director Stephen Norman said during a recent media conference call, refusing to elaborate on exactly how many will be retained.
People are more likely to to research cars online now and less likely to come in person to discuss the different models.
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Contracts are renewed on a two-year rolling basis.