Going gets tough: Land Rover hits the road
LUXURY 4x4 maker Land Rover's Irish business dropped so far during the recession its parent company decided to pull out of the market, according to accounts filed with the Companies Office.
The accounts say Land Rover's UK parent decided to hand over future trading of their brands to a third party, rather than carry on running the Irish subsidiary themselves.
"Sales volumes achievable in Ireland reduced to such a level in 2009 that the existing national sales company business model was no longer deemed viable," according to company accounts filed for Land Rover Ireland.
Land Rover's decision to pull out of Ireland shows just how rapidly the car industry has been hit by the recession. In 2007, the value of Land Rover's Irish sales hit an all-time high of €113m. Statistics from the Society of the Irish Motor Industry (SIMI) show sales of Land Rovers dropped by almost 90pc between 2007 and the end of last year.
The number of vehicles sold here fell from 2,200 to just 236, according to the SIMI figures. The latest company accounts were signed off in April this year and show turnover dropped from €47m in the 21 months to the end of 2009, to under a quarter of a million euro in the year to the end of September last.