CAR FIRM BMW increased its turnover in Ireland last year by 47.1 per cent to €80 million.
According to accounts for BMW Automotive Ireland, the national distributor for the premium brand, the firm recorded an operating loss of €2.8 million in 2010, improving on its €3.6 million loss in 2009.
In its report, the directors state that “with the outlook for the Irish economy still fragile, a return to more sustainable industry volumes in the short term is unlikely”.
They state that while there was some recovery in 2010, a significant part of the increase was due to the Government’s scrappage programme and, even then, new car sales were only half of the average annual industry registrations between 2001 and 2007.
Despite the sluggish performance of the overall market, the directors state that BMW sales increased by 72 per cent in 2010, albeit from a low base the year before, and recorded its highest yet share of the premium car market.
Much of this, the annual report claims, was down to the introduction of new products such as the BMW X1 and the 5 Series.
According to figures from the Society of the Irish Motor Industry, 88,373 new cars were registered in 2010, up from 57,118 the previous year.
Of the total market last year, BMW had a 2.8 per cent share, with 2,493 new cars registered.
Figures for this year show BMW has a 3.6 per cent market share for the first nine months, based on registrations of 3,122 new cars.
When assessing the financial risk of the firm, the directors state that BMW Ireland is exposed to foreign-exchange and interest-rate fluctuations.
While vehicles are purchased directly from the company’s German parent in euro, parts are bought from BMW UK in sterling.
The accounts show a cash balance of €29.5 million, of which €24.4 million is held in deposit with BMW (UK) Capital Plc.
Meanwhile, one of BMW’s leading rivals in the premium car market, Audi, has confirmed that construction is to begin on a new €10 million premises for the brand in north Dublin, due for completion next June.
Audi North Dublin, which is part of the Joe Duffy Motor Group, plans to create 30 jobs over the next two years at its new premises. On completion, it will be the largest Audi centre in Ireland.
The facility forms part of a national plan by Audi Ireland for an €80 million investment programme over the coming 18 months. It intends to have 10 dedicated centres across the State by then and estimates that in the region of 200 jobs will be created.