Joe Duffy Motors, one of the country's largest motor groups, will further expand its business after agreeing to buy the largest Ford dealership in Munster.
The Dublin-headquartered group has agreed to buy CAB Motor Company from Cork businessman, Conor Cavanagh, subject to approval from regulators at the Competition and Consumer Protection Commission. The acquisition of the Ballintemple business in the east of Cork city brings the number of Joe Duffy dealerships to 22.
CAB employed about 50 staff at the time of its last filed set of accounts, for 2019. It had sales that year of €21.1 million and made a loss of about €450,000. The company had net assets of €6.4 million and valued its showroom at €4.3 million.
Gavin Hydes, the chief executive and controlling shareholder of Joe Duffy Motors, said the deal signifies the company's ambition to grow its footprint in Munster. The bulk of the group's dealerships are in Dublin and the north east, with others in Limerick and Athlone.
Profit
Joe Duffy this week filed accounts showing its sales grew last year in the pandemic to almost €338 million, as customers resorted to buying more cars from it online while a spike in the profits on used cars also helped to drive its performance. The group made a profit of €7.1 million but warned of a future “realignment” of profit margins on used cars.
It also warned of the impending financial impact of a shortage of new cars for sale, as manufacturers struggle to address a shortage of semiconductor chips for cars due to a global shortage caused by a breakdown in the global supply chain in the pandemic.
Factory closures due to lockdowns in Malaysia, in particular, have hit the motor industry hard. Chips are used to control a large number of functions in modern vehicles and the industry has warned that the shortage will hurt sales.
