VW calls in its Irish importer for talks

Volkswagen is preparing to revamp its marketing and distribution network in several European countries. In Ireland, importer Motor Distributors Ltd (MDL) is talking with Volkswagen AG at the German firm's behest about the future import and marketing operations of its brands, VW, Audi and Skoda. Other markets involved in talks are thought to include Belgium, Norway, Denmark and Luxembourg.

MDL, owned by the O'Flaherty family, has built up a network of over 50 dealers and all have been put in the picture after VW officials contacted MDL last Thursday. Dealers and staff were informed of the situation on Monday. VW's decision comes in the week when MDL is signing new contracts with its VW and Audi dealers.

Manufacturers are seeking more direct control in the face of sweeping new EU rules on competition introduced recently. Car firms have imposed selective criteria which set out in detail the requirements and standards that must be met by dealers.

Stephen O'Flaherty got the VW Beetle franchise in 1950 and set up the original assembly plant in a disused tram depot - now Ballsbridge Motors. MDL now operates out of the former Burton suits factory on the Naas Road.

Ireland was the first country outside Germany to have an assembly plant for the original Beetle and its huge success here contributed to the growth of the O'Flaherty motor empire. The family firm, now run by Nigel and Michael O'Flaherty, also owns five dealerships under the name Motor Services Ltd, four in Dublin and one in Cork. MDL also owns the Mercedes Irish franchise, as well as a 50 per cent share in SEAT importer Hispano Cars.

BMW bought Irish distrib- ution rights back from Frank Keane's Motor Imports Ltd as part of a European strategy to take control from national distributors.