Tom Hogan Motors, one of the largest Toyota dealers in the State, has gone into voluntary liquidation with the expected loss of almost 200 jobs.
The company, which was headquartered in Galway, had garages in Clonmel, Ennis, Limerick and Shannon. Staff were informed today that the company has ceased trading.
It supplied Toyota and Lexus models and took over the BMW franchise in Galway city from Barry Motors last year.
Steve Tormey, deputy managing director with Toyota Ireland, said it was very sad to see a company of the calibre of Tom Hogan's going into liquidation.
He said Toyota's thoughts were with the management and staff with which it has had a relationship for over 30 years.
"We would also like to reassure our customers that their full warranty and service needs will be met by other authorised Toyota dealers".
The liquidation dents Toyota's dealer network in the Midwest region.
A representative of Tom Hogan Motors could not be reached for comment this afternoon.
BMW Group Ireland said in a statement that it understood "Tom Hogan BMW & MINI, which has been a stand alone company since it joined the BMW Group Ireland network in October 2008, will cease trading with immediate effect".
BMW said it was committed to maintaining a sales presence in Galway. Customers with service or warranty issues can contact the aftersales facilities in other dealers and authorised repairers in BMW's network, it said.
Fine Gael TD for Clare Joe Carey said the closure of the group highlighted the crisis facing the Irish motor industry
"This is a very difficult and uncertain time for all involved. I hope they will be able secure alternative opportunities promptly if necessary," he said.
"Tom Hogan Motors is one of the largest dealerships in the country to face closure. It is a very worrying indication of the problems facing the Irish motor industry at present."
The firm has expanded its business in the past few years. In 2005, the company opened new premises in Galway at a cost of €3 million.
However, the car industry has been hit hard in the economic downturn with the latest figures from the Central Statistics Office showing new car registrations down more than 60 per cent in May compared with a year earlier.
Several dealerships have closed their doors in recent months, including one of the country's oldest BMW dealerships, Pat Keogh Ltd, based in Limerick.
In January, Winfield Motors, which had garages and showrooms in Sandymount and Dun Laoghaire, and Westland Motors, in Liffey Valley, west Dublin, announced they were being wound up.
According to the most recent accounts filed with the Companies Registration Offic, the Tom Hogan Group reported a pretax loss of €393,163 in 2006, after a writedown of €992,559 for exceptional costs.
Turnover was €103 million and the cost of sales €98 million.