AUDI WILL cut its Irish dealer network from 34 sales and service outlets to 14 by 2013. The current dealers and service agents have been put on notice, and their contracts will expire on June 30th next for servicing and March 31st 2012 for sales.

Fintan Knight, director of Audi Ireland, said they had already received over 20 expressions of interest in taking on the new Audi franchises. “We will appoint between eight and 10 companies to operate the 14 new Audi outlets. We think we can cover 95 per cent of our customer base with these 14 centres.”

These new franchise holders will be expected to invest between €5 million and €8 million in their new outlets. Audi will support them with a new sponsored dealer programme, providing venture capital and, in some instances, financial assistance in the funding of premises. Mr Knight said while the current dealer network had invested in their businesses “Audi was a small part of that”.

At the opening of the Dublin Audi Centre in Ballsbridge, Mr Knight said the Irish motor industry must tackle poor customer service, low qualification levels of technical and other staff, and an oversupply of dealerships.