GALLIC DISTRIBUTORS, the Irish importer for Citroën vehicles, is to close with the loss of 30 jobs.
A subsidiary of the Gowan Group, it will hand back control of the brand to the French car firm in November.
In a statement, the company said the decision had been taken “as a direct result of the complete collapse in the markets for new cars and light commercial vehicles.
“The reductions of 63 per cent and 70 per cent in the markets for cars and vans respectively, has rendered it impossible for Gallic Distributors to continue as a financially viable importer for Citroën in Ireland.”
Sales of the French marque this year have fallen by 67 per cent for cars and 69 per cent for vans.
Gallic Distributors has sold just 731 new cars up to the end of August, with a market share of 1.4 per cent.
This compares with a 3.2 per cent share of the Irish market for its sister brand Peugeot.
In recent years the brand has been caught up in a price-fixing investigation by the Competition Authority.
This led to the conviction of several dealers who were members of the Citroën Dealers Association. These dealers were found guilty of agreeing to implement a scheme in which prices were set by the organisation for maximum discounts from the recommended retail price, delivery charges, accessory prices, trade-in values and export prices.
The brand also engaged in an ill-fated discounting scheme in 2006 in an attempt to boost its market share.
It cut the price of new cars, but left earlier buyers angry over the resulting drop in the resale value of their cars.
That year, during a boom period for the Irish motor industry with new sales up by nearly 6 per cent, Citroën sales in Ireland dropped by 23 per cent.
Citroën currently has 28 dealer outlets, two of which are owned by the Gowan Group.
Sales and repairs for the brand will continue at these dealerships.
The Gowan Group will continue to operate as an importer and distributor for the Peugeot car brand, and for Honda, through its associate company, Universal Honda. The Citroën dealer network will remain in place.
Gallic Distributors took over Citroën operations in Ireland in 1982.
