Opel’s Irish profits decline to €1.4m

OPERATING profits at Opel cars stagnated at €1.4 million in Ireland last year as sales suffered a sharp setback in a generally depressed auto market.

General Motors, owners of the Opel franchise, reported sales down by over 20%, resulting in a dip in turnover from €276m to €198.6m.

An interest payment of €580,000 on bank loans saw 2008 profits before tax fall to €1.12m compared to €1.93m in 2007.

The overall car market in Ireland shrank by 22.2% last year, while the passenger car market fell 18.6% to 151,000 units in 2008 from 186,000 in 2007.

The group said it had succeeded in holding its market share of 7.8% while the market in 2008 was well below the level of demand in 2007.

GM is expected to launch a number of new models next year, while last April’s launch of the Opel Insignia boosted the group’s position in the larger car market. GM Ireland has transferred its shares to a trust as a first step towards the transfer of the Opel distributor’s business to the European group’s new owners.