Volkswagen Group saw Irish profits rise 13% last year

Irish arm of German car giant recorded sales of €766m across its four brands in 2019

Volkswagen’s new all-electric ID.3s being unloaded at Dublin Port. Photo: Paddy McGrath

Volkswagen’s new all-electric ID.3s being unloaded at Dublin Port. Photo: Paddy McGrath

 

Volkswagen Group Ireland, the State’s biggest car company, saw its operating profit rise 13 per cent last year to €10.2 million.

Turnover at the wholly owned Irish subsidiary of the global car giant rose 3 per cent to €766 million for the year ended December 31st, 2019. Profit before tax was €9.16 million, up from €7.8 million the year before.

With its Volkswagen, Audi, Skoda and Seat brands the group accounted for 27 per cent of all new car sales in the State last year, up from 25 per cent in 2018. It also has a 15 per cent share of the commercial van market.

Last year the group’s new car sales totalled 31,477, similar to 2018 when it sold 31,498 new cars. VW commercial van sales fell slightly in 2019 to 4,750 from 4,893 the previous year.

The Volkswagen brand accounted for 13,508 new car sales in 2019, Skoda 9,300, Audi 4,582, and Seat 4,087. It meant Volkswagen was the best-selling new car brand last year, with Audi the best-selling premium marque.

So far this year, group new car sales have dropped 21 per cent to 24,690, in an overall market that is down by 25 per cent to 87,549.

‘Cautiously optimistic’

According to a VW Group spokesman, Covid-19 has had a significant impact on the passenger car market, although the company has adapted to the changes across its dealer network, including the introduction of new virtual sales measures. He said the arrival of several new electric models across the group’s brands has had a positive impact. “Our dealers are ‘cautiously optimistic’ of a strong 2021, as are we,” he said.

The group recorded €11.5 million on warranty repairs on vehicles last year, up from €8.3 million in 2018.

The company employed 142 staff, with total staff costs coming to €14.3 million, up from €13.5 million in 2018. Directors’ remuneration fell €39,000 to €727,000.

It paid an interim dividend of €6.6 million to its parent company during the year.