Business and Finance Daily News Service reported that BMW has terminated a distribution deal with a partner in Ireland in response to changes in the car sale legislation implemented by the European Commission.
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BMW is to import its cars itself while the previous importer, the Frank Keane-owned Motor Import Limited, is to move into the retail market. A number of Motor Import Limited staff are to transfer to the new BMW subsidiary.
The commission’s so-called block exemption directive will only affect Irish distributors who operate as subsidiaries of the car manufacturers. Most car dealers in Ireland are wholly-owned Irish firms and will not be impacted by the directive.
The EU reforms will allow car dealers in Ireland and elsewhere in Europe to sell a number of different marques while motorists will be able to buy cars in any member-state without extra cost or hindrance, although VRT taxes imposed by the Irish government will remain in place. However, the motor industry has warned that the regulation may raise car prices because it will force manufacturers to harmonise pre-tax prices across the EU. Pre-tax prices in Ireland are lower than the European average to off-set high VRT, the report said.
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