VW to take over Irish distribution

Monday 22 January 2007 11.46
VW to take over Irish distribution

The company which owns the franchise for Volkswagen, Audi and Skoda cars in the Republic is to transfer its operations to Volkswagen next year.

Motor Distributors Limited said it had reached agreement with Volkswagen on the deal, which comes into effect on October 1 2008, following talks which started in 2003. It said there would be no job losses or changes in employment terms and conditions for its 120 workers as a result of the move.

Under the terms of this agreement, Motor Distributors will form a new company to operate the Volkswagen, Audi and Skoda business and all staff currently dedicated to these brands will transfer to this new company in July 2007. The new company will operate under the ownership and management of Motor Distributors until the transfer date.

Motor Distributors Limited will be represented on the board of this new company for an agreed period after Volkswagen  acquires ownership. It first acquired the franchise to distribute the Volkswagen Beetle in Ireland in 1950. In 2006 Volkswagen, Audi and Skoda had a combined share of 16.7% of the passenger car market.