Volkswagen in talks with O'Flaherty's: Volkswagen is once again in discussions with the O'Flaherty group about assuming control of VW's Irish operation.
The O'Flaherty group, through its subsidiary Motor Distributors Limited, has held control of the Volkswagen franchise here since 1950 when the late Stephen O'Flaherty began assembly of the Beetle.
Discussions were first confirmed in September 2003, but then seem to have gone into abeyance. A spokesman for Motor Distributors confirmed that they had been resumed but said no time had been set for completion. An earlier report this week suggested that a takeover would happen in 2005, and that the real negotiations now were about the amount of compensation due to directors Michael and Nigel O'Flaherty, sons of Stephen.
MDL is the biggest importer on the Irish motoring scene, accounting for one in five new cars going on Irish roads. It also holds the Mercedes-Benz and Mazda franchises, as well as the Skoda and Audi divisions of Volkswagen. Last year it was announced that MDL would be relinquishing the Mazda franchise: Mazda's European holding company takes control in mid-2006.
WESTERN EUROPE'S CAR INDUSTRY 'AT RISK': The car making industry in western Europe is at risk unless it takes steps to boost its international competitiveness, a senior Ford executive said yesterday.
"The fact of the matter is, these days it is not a very competitive place to do business," according to Mark Fields, executive vice-president of Ford's Premier Automotive Group (pictured above).
He said low-cost labour elsewhere and the emerging pool of engineers in places such as China and India made car makers take a hard look at where to manufacture in future.
FIAT AND GM IN LAST-DITCH MEDIATION PROCESS: Fiat will not attempt to force General Motors to take over its lossmaking car division on Monday even though a disputed option to do so, agreed between the companies five years ago, comes into force.
A long and complicated legal argument over the Italian car operation still beckons but the two sides are in a last-ditch mediation process.
PRIUS SALES 60 PER CENT ABOVE EXPECTATIONS LAST YEAR: Toyota Prius (pictured above) sales in Europe last year were 60 per cent above expectations at over 8,000 and this year over 15,000 will be produced, according to Dr Akihiko Saito, executive vice-president of Toyota. He was accepting the 2005 European Car of the Year award at a ceremony in Stockholm last week.
Dr Saito, remarking that Prius was just the beginning of the hybrid story, said he had a big dream. "One day I want to see ultra high-performance fuel cell hybrid racing cars line up on the Formula One starting grid. I think it will happen."
Prius was elected 2005 Car of the Year by 58 leading motoring journalists from 23 countries including Ireland.
HYUNDAI FOR TIPPERARY: Corbett Motorvillage in Co Tipperary has been appointed the Hyundai dealer for Thurles. It also holds the Saab franchise for the county.