Rathdown Motors, which has been a prominent south Dublin car dealership for more than 25 years, is to close before Christmas with the loss of 16 full-time and two part-time jobs.
The company, a main Hyundai dealer, said that despite substantial investment in the business and an experienced management team, losses had continued due to the major decline in the car market.
Rathdown said it would provide service support for warranty customers for six months after the closure; and its site, which occupies a prominent location in the heart of Terenure, will be put on the market.
Businessman Mark Turley, who set up the company in 1986, said he very much regretted the closure.
"Market conditions for new car sales are weak, heavy discounting in the second-hand market further exacerbates the situation and the outlook is at best poor," he said.