Frank Keane whose company is losing the BMW import franchise from next October, insists that he will not have a competitive advantage over other BMW dealers when he sets up his own dealership in west Dublin next October. By Andrew Hamilton.
In an exclusive interview with Motors, he says the takeover was "inevitable" while he refuses to speculate on the financial compensation he received, saying only that BMW has over the years made a "contribution" to his personal wealth.
The news that emulated from Ireland's Motown on the Naas Road last week had already been well aired: Frank Keane was losing his BMW import franchise, BMW in Germany was setting up its own factory-owned operation here and the existing Irish BMW dealers would have to sign new contracts.
But oddly, it still caused a sensation within the Irish motor industry much given to speculation and rumour. Like the death of a lingering elderly aunt, there was the expectation of the final curtain yet we couldn't quite comprehend it. Perhaps it was because Frank Keane had been so long part of the Irish motor scene.
Inevitably, BMW's takeover has brought into focus the future of other Irish-owned importers. They include Motors Distributors whose franchises are Mercedes-Benz, Volkswagen, Audi, Skoda and Mazda. Collectively these marques account for one in five of all new cars going on Irish roads.
Motor Distributors has its genesis in the success of the legendary Volkswagen Beetle imported by the late Stephen O'Flaherty in 1950 and assembled in an old tramway depot on the Shelbourne Road in Dublin 4. He went on to acquire the Irish Mercedes-Benz franchise.
Irish-owned importers also include Toyota Ireland controlled by Dr Tim Mahony this year celebrating 30 years on the Irish market.
Others are Gowan Distributors and Gallic Distributors, for Peugeot and Citroen respectively, Renault Distributors owned by Bill Cullen and the OHM Group whose interests are Jaguar, Saab, Seat, and Chrysler. Ford, Opel, Fiat and Volvo are among the wholly-owned subsidiaries here.
The joint statement from BMW in Munich and Motor Import issued last Thursday, alluded to the more competitive environment for motor retailing that is being pushed by the EU.
With tighter margins ensuing from this policy, it is thought that manufacturers arte seeking ways of cutting out unnecessary costs.
One of these costs has to be the costs enjoyed by locally-owned importers. For BMW, Ireland was one of only five countries in Europe not under its direct control and it is pledging to acquire the importers in Greece, Denmark, Luxembourg and Portugal as well.
What of the new company that BMW will set up here? The chief executive will be Conrad Schmidt, currently project manager for BMW's European region. He was not available for comment but BMW spokesman Michael Rebstock speaking from Munich, says he would be revealing his plans closer to the October start-up date.
It is probable that new BMW cars will be brought into the Republic from the British wholly-owned subsidiary, BMW GB. Currently new models for the Irish market are shipped here from Germany. The change could mean significant reduction in waiting times for cars as the new operation would be sourcing from a larger pool. Already, spare parts are sourced from the British operation.
Conrad Schmidt will be meeting the Irish BMW dealer network when they will have to sign new contracts.