BMW joins VRT lament

With car prices already up five per cent this year and further increases on the way due to new EU rules, a senior European car industry official has added his voice to calls on the Government to reform the heavy tax burden on Irish motorists.

Dr Michael Ganal, a member of the board of BMW AG, says that any price rises would be the responsibility of the Government and not the manufacturers. He was joined by several BMW colleagues from the British importer operation in expressing surprise at the attitude taken by the Irish Government in resisting the general belief within the EU that our punitive Vehicle Registration Tax (VRT) is contrary to the spirit of the European single market.

Despite the expected price increases, Dr Ganal expressed confidence in the Irish market, particularly the premium segment, which he said had increased fivefold in the past 10 years. While BMW sales here are down 17 per cent over the past eight months, he pointed in particular to the MINI marque as one where there is significant room for expansion. "In Britain we manage to sell two BMWs for every one MINI sold. Here that ratio is 10 BMWs to one MINI."

On product variety, he suggested BMW may enter the MPV market. Dr Ganal said BMW remained committed to expanding its line-up. The key, he says, is to expand into segments that fit with the brand. It's less about building the car and more about protecting the image and creating a car that fits. Within that context, says Dr Ganal, "we may build a premium MPV if we can."

Dr Ganal was speaking at the official launch of BMW's new Irish sales company based in Santry, Dublin.

Dr Ganal spelled out the benefits of the new operation, saying that it now offered BMW's Irish customers a far greater variety of choice in terms of specification levels, and also allowed them greater access to the ordering process for their car.

BMW will also introduce a five-year policy covering all service costs for customers the new 5 Series, and all future models, aimed at encouraging customers to return to their dealers to get their cars serviced. The service package costs €1,000. The new EU rules permit motorists to use any authorised service centre without affecting their warranty.