German luxury brand reveals plans to weather the storm, writes Michael McAleer
NEW CAR sales are likely to fall by 33 per cent next year, according to Stephen Byrne, managing director of Mercedes-Benz Ireland. In the current economic climate he says the motor industry "will be very happy if it manages to sell between 80,000 and 100,000 new cars next year".
This compares with 151,426 new cars registered this year to the end of November, and 186,540 registered in 2007.
Byrne expects every Mercedes dealer is likely to lose money next year from their motoring business, with warranty repairs and servicing work being perhaps the only areas of profitability.
Nevertheless, he is confident that, in the longer term, the Irish car market will recover. In particular, he says Mercedes' new Star Select sales programme, with price discounts on used models, will tackle the growing influx of lower-priced used imports from Britain.
It coincides with significant discounts on new car prices on the back of the July changes to the Vehicle Registration Tax (VRT) regime. These have seen the price of C-Class, E-Class and new CLC diesel models drop by up to €16,000. In the C-Class range, the C200 CDI has gone down to €40,070 ex-works from €48,630. In the E-Class range, the volume-selling E220 diesel has dropped to €45,670 from €61,000.
New models for 2009 will also bolster sales, says Ciaran Allen, sales manager for Mercedes Ireland passenger cars.
The new line-up for 2009 includes face-lifted versions of their popular A-Class, B-Class and M-Class ranges, along with revamped SL, SLK, CLS and CLC models.
Later in the year, a number of new models will arrive, beginning with a new E-Class, E-Class coupé and face-lifted S-Class. Target date for the arrival of the new E-Class is late summer. Also arriving mid-year will be the revamped S-Class. Following them will be the new E-Class coupé.
Mercedes is distributed in Ireland by Motor Distributors Ltd (MDL), part of O'Flaherty Holdings.
Earlier this year it handed back the import rights for Volkswagen and its sister marques Audi and Skoda to the German parent company, Volkswagen AG. It had held the exclusive Irish franchise for the Volkswagen marque since the immediate aftermath of the second World War.
Mercedes Benz Ireland recently advertised for four new dealers: in Sligo, Wexford, a second outlet in Cork and, more recently, a vacancy in Co Galway after Western Motors ended its 25-year relationship with the brand.
O'Flaherty Holdings' own dealer network, Motor Services Ltd (MSL), is to open the second Mercedes Cork dealership at a new facility in Eastgate that is being built at a cost of €8 million.
It already owns the Dublin-based car showrooms Ballsbridge Motors, Grange Motors and Park Motors.
New independent dealers for the other three areas will be announced at the end of January.