Mazda is to take control of the import and distribution of its cars in Ireland from Motor Distributors Limited (MDL) at the end of this month.
MDL is the largest independent vehicle importer in Ireland controlling the distribution of VW, Audi, Mercedes and Skoda cars. It has also controlled the Mazda franchise since the brand was introduced here in 1974. But as part of Mazda's plan to take control of national distribution from independent importers in several countries, the company indicated that it intended to create a wholly-owned Irish national sales company over 18 months ago.
Since then, behind the scenes work has been under way that will culminate at the end of this month with a new national sales company - Mazda Motor Ireland - being established in Ballsbridge, Dublin. The new company will employ 17 staff, including 11 who will transfer directly from MDL, retaining their positions and conditions. The additional staff will be made up of employees from Mazda Europe as well as the company's new managing director, 37-year-old David McGonigle who comes from Mazda UK where he held a position as fleet and marketing director.
Probably because it has been known for some time that MDL would not retain the Mazda franchise, marketing and promotion of the brand here has been wanting. As McGonigle confirmed: "Mazda hasn't been on the motorists' radar for some time, but we plan to put it back. Although I would not like to comment on sales expectations at this stage, it would be fair to say that we are not coming into Ireland and establishing a national sales company without planning to do more volume than we are today."
Over the past three years, Mazda's marketshare has fluctuated between 2.5 and 3 per cent, which in the present climate equates to some 4,500 cars annually. But after the first five months of this year, its market share had fallen to just 1.85 per cent.
Mazda's Irish network of 33 dealerships is expected to remain unchanged in the short-term, although McGonigle plans to eventually increase that number. All the current dealers have been offered new contracts and are expected to sign them before the end of the month. "It has been an uncertain time for our dealers," admitted David Moran, Mazda marketing manager. "But now they know that Mazda is positive about growing its share of the Irish market. That's got to be a good thing for dealers."
The change in distribution should also bring noticeable benefits to Mazda customers. "They will see a substantial difference," promises McGonigle. "Mazda customers are now more likely to get the right vehicle, in the right colour and with the specification they want."
This is because the new company will source all vehicles and spare parts directly from European distribution centres in Belgium and Holland.
This is common practice among many car manufacturers and means dealers can pre-order cars more suited to their customers.
By the end of 2006, Mazda will have established its own national sales companies in 15 European countries, up from 11 one year ago.