Contrasting fortunes for Citroën and Volvo

Two major car brands last year recorded contrasting fortunes here, with Citroën enjoying increased profits, while rival Volvo saw profits almost halving.

According to accounts filed by Citroën Motors Ireland Ltd, pre-tax profits rose by 8% to €142,000 as revenues climbed by 8.5% from €26.4m to €28.69m in the 12 months to the end of December last.

This is in contrast to figures lodged by Volvo Car Ireland Ltd, that show pre- tax profits fell by 45% from €239,370 to €132,218 as revenues fell by 17.5% to €21.38m.

However, the directors’ report states that the car industry in Ireland grew by 20% to the end of May 2014 compared with last year “and Volvo is out performing the market with 38% growth at the end of May compared to 2013”. The directors state: “Our market share has therefore increased from 1.07% to 1.2%.”

Volvo Ireland last year paid a dividend of €1m.

The directors’ report attached to Citroën Motors Ireland Ltd show Citroen’s share of the market has reduced from 1.9% to 1.4% in the sales of new cars. It states that 2014 will see the continuation of new model activity with the launches of New Grand C4 Picasso, the new C1, and Cactus.

The strategy for the year is to grow market share with the development of the dealer network, and expand sales opportunities through retail campaigns and fleet opportunities.