STAFF AT Belgard Motors held a protest yesterday outside Volkswagen Ireland’s headquarters following the appointment last Friday of a provisional liquidator to the Tallaght-based dealer, over debts of more than €17 million.
The protest ended after VW Ireland managing director Paul Willis spoke to representatives.
Mr Willis told The Irish Timesyesterday that VW had not pulled its franchise from the company and that agreements had not yet been terminated, although he confirmed the company was intending to end the agreements.
“Many dealers in Ireland are in a very serious situation,” he said. “I feel very sad for these employees . . . However, I have done everything I believe is right and appropriate to support dealers over the past 18 months.”
Brian Murphy, a former director with Belgard Motors, had recently been asked to put together a survival plan and was prepared to invest working capital to refinance the business. The plan, which had the support of staff, Belgard’s main bank and the other franchise operators, would have saved about 55 of 82 jobs.
“Going forward with the balance restructured and the company restructured, that company can survive quite well in a very much shrunken market,” Mr Murphy said.
“It is also a fact that the whole of the motor business in Belgard Motors didn’t depend just on car sales. The vast bulk of the business was occupying an after-sales business, which is servicing, spare parts and body repairs. There is absolutely no decline in that business. In fact there is an argument to suggest that business has increased.”
However, Mr Murphy said the survival plan was based on retaining the VW/Audi franchise, which accounted for 75 per cent of vehicle sales; the company was not viable without it.
Mr Willis said the car market here would not support the level of dealers operating at present and he warned that more dealer closures were inevitable.
He said VW Ireland would lose money as a result of the closure of Belgard. Deposits that customers had lodged with the dealer for VW vehicles would be honoured by VW Ireland, Mr Willis added.
