A Kuwaiti, a Palestinian and an Irishman got together to talk to some Japanese executives about setting up a company. . .

It sounds like the opening line of a joke but such were the origins of Nissan Ireland which, 21 years since its formation has cornered a healthy 10 per cent chunk of the Irish motor market.

Now the same trio is embarking on a similar venture for the last major international car manufacturer not represented in Ireland, Daewoo, which is part of the Korean corporation of the same name.

Mr Barrak Al-Babtain, Mr Tawfiq Hussein and Mr Gerard O'Toole have put together £5 million to establish 25 single-brand dealerships around Ireland, aimed at achieving a 1.5 per cent market share within a year, backed by an aggressive marketing campaign.

Daewoo will shake up the market through a combination of what it claims are high-specification cars and "focusing hugely on price". Three new marques, the Lanos, the Nubira and the Leganza, along with the Matiz mini-vehicle, launched in Europe last September, will become part of the talk of prospective car owners in the New Year.

"Every car is a first generation vehicle, manufactured and launched within the last five months. In that context it is unusual," Mr O'Toole says.

Daewoo Motors expects to sell 60,000 units of the Matiz small car in Europe this year. The company produces 900,000 cars a year and expects to be profitable in 1999. In Ireland, the Matiz, with power steering and dual airbags, will sell from £8,695 ex-works. "That compares with average prices of around £10,000 for competitive cars in the same sector," Mr O'Toole says.

He initially met company representatives when they established their first European base three years ago. He was late entering the fray for the Ireland subsidiary even then, but a deal which had been struck with another Irish investor fell through. An approach which is neither table-thumping nor quiet negotiation, coupled with a knowledge of the marketplace, commitment and reputation saw him through. "Inevitably it turns out to be a lifetime engagement," he says.

The other Korean marque in Ireland, Hyundai, he notes, has a 2.4 per cent market share. "I am delighted they are doing well because it opens the market up to other Korean franchises."

He sees no contradiction in serving two masters and promoting two car brands. The only "commonality" is that he is chairman of both companies "If we were not going to take this franchise, somebody else was," he points out.

His instinct made him go for this deal and apart from the product, the weakness of the Korean won will give the country an edge for all its exports. "I am familiar with the work ethic and the competitive drive of Koreans in particular. When it is translated into global products, I believe that, simply, they are going to succeed. Along with the Japanese, they run the most productive and efficient car plants in the world."

In 12 weeks, Daewoo Ireland has acquired some of the ethos of its parent company, assembling a dealership network, finance houses, advertising agencies and a management team. "We have surprised ourselves, because quite frankly we did not expect to achieve so much in such a short space of time." Wearing his Nissan hat, superstition flashes across Mr O'Toole's mind as he ponders talking of his success since 1977. He has always "had this thing", he says, about managers going into management conferences in Killarney, saying how they do it, "and five years on you say, `What happened to that guy?'."

But he can look back on 21 years of success with the company which was established with share capital of just £500,000.

Now it sells 16,000 units a year, turning over £130 million. "Our objective is to hold 10 per cent of the market. What has happened during the past five, six years is that market share for the top five players has fallen hugely.

"Since 1984, many new entrants have come into the market place, each achieving between 0.5 and 3.5 per cent of the market place."

He claims that Nissan engines have "probably the best engine technology in terms of mass produced cars", and cites consumer research showing that 72 per cent of Nissan owners would buy the same model again, "a high retention rate".

The car salesman role has changed significantly as marketing adapts to a sophisticated consumer. Mr O'Toole's management team is highly-educated, computer literate, articulate and careerist. "if you do not recruit people like that, you're going to go backwards".

He manages people through respecting them, he says, being himself and leading by example. "If they see a lack of commitment or a lack of interest, it permeates all the way down and it is destructive in the context of any business."

Mr O'Toole has the archetypal car executive's office. Lots of glass with a grey black decor and the ultra-violet blue lights from the customised Nissan showrooms shining in. He grew up in Dalkey, Co Dublin, and still lives there. He has a degree in economics and politics from Trinity College, Dublin, attending the university because UCD would not allow him entry without Latin. "I just felt it was absolutely ridiculous," he says.

At the time he did not bother waiting to receive permission from Archbishop John McQuaid, although it arrived a year-and-a-half later. He completed his chartered accountancy exams while working from Price Waterhouse in London, returning to Ireland in 1975 to work for Alcan in Aughinish, Co Clare.

He then went to work for TMG which took a stake in Nissan Ireland when it was being set up. Within 12 weeks and at the age of 30, he was appointed chief executive of the Nissan operation. "We worked day and night, seven days a week. It was what was required at the time," he says.

When he is not working, he plays golf, walks, swims and jogs. "But everybody tells you that. They are probably down in the pub drinking all the time."

The pub, however, is not for him. "I have a glass of wine, good wine. You get to an age where pints are too heavy and pubs are too crowded."

He drives a Nissan Cima, a derivative of the manufacturer's luxury Infinity range which is marketed in the US. With a 4.1 V8 engine, it is "a most beautiful car".

Registration tax and VAT account for about 45 per cent of a car price, and amount to "one-seventh of all Government revenues", Mr O'Toole claims. "There are not too many cars on the road. There are not enough roads, there are not enough proper roads. There is not enough public transport. The payback in terms of infrastructure has been infinitesmal."