EU rules force changes in motor industry
In the article, Mr Hobbs is quoted as saying on RTÉ radio: “The evidence is to the contrary. If you look at the increase in new forecourts being built and so on, the industry isn’t suffering from lack of confidence in its future.”
If Mr Hobbs had researched the matter, he would have realised that the motor industry is not investing in forecourts and premises through some sense of misplaced hubris or over-confidence on their part.
As the largest independent management consultancy to the Irish motor industry, we can confidently state that motor franchise holders in this country have recently been constrained by relatively new EU legislation, which has forced many dealers to undertake massive structural and financial investment in their businesses. This, in most cases, was not undertaken by personal choice.
In brief, the legislation changes the ground rules for the sale and distribution of motor vehicles in the EU. All franchised motor dealers must comply with new minimum requirements of their distributor or manufacturer. Failure to do so will result in these main dealers relinquishing their franchises.
The extent of these forecourt developments are, in the main, dictated by the minimum requirements insisted upon by their distributors or manufacturers.
The Irish motor dealer is again on the receiving end of even greater levels of bureaucracy that have further eroded their already miniscule levels of profitability.
It is incumbent on Mr Hobbs to be factually correct. He has done a grave disservice to an industry employing over 50,000 people.
Pearce Flannery
CEO
Pragmatica Business Solutions
BSM Building
Parkmore Business Park West
Galway
