VW to directly control Seat's Irish network

VOLKSWAGEN IS to assume direct control of Seat’s Irish operations from its current importer, Hispano Cars, from November 1st. It completes the takeover of VW’s other brands in Ireland from independent local distributors.

Paul Willis, managing director of Volkswagen Group Ireland, told The Irish Times: “We believe direct control is the only way to develop the full potential of the Seat brand, which we believe could achieve a market share of 2 per cent-plus.”

Seat has a 1.2 per cent share of the new car market, selling 553 cars in the first six months of this year. Its best sales year came in 2000 with sales of 6,240 cars, achieving a 2.7 per cent.

Mr Willis said the initial target for next year is 1.5 per cent of a total new car market he estimates to be 55,000. Seat currently has a network of 35 Irish dealers.

Volkswagen took control of Irish operations for its VW, Audi and Skoda brands last October from Motor Distributors (MDL), a subsidiary of O’Flaherty Holdings.

Seat is currently distributed by Hispano Cars, a joint-venture operation between the OHM Group and O’Flaherty Holdings. It is believed a consideration was paid by Volkswagen, although all parties refused to discuss the details. Hispano reported a turnover of €54.2 million for the year to March 31st 2008, with an operating profit of €487,313.

The brand was originally introduced to Ireland in 1985, with O’Flaherty Holdings investing in the Irish operation in line with the global takeover of Seat by Volkswagen in 1990.

However, day-to-day responsibility remained with the OHM Group, with six of OHM’s 180 staff working directly on the brand. There is no agreement to transfer current staff to the VW Group as part of the takeover.

A spokesman for OHM said Seat has been one of the biggest selling brands in its car portfolio.