Volkswagen and Motor Distributors Ltd. agree to set up new import company “Volkswagen Group Ireland”

Volkswagen AG and their importer in Ireland, Motor Distributors Ltd. (MDL), have agreed to a new arrangement whereby responsibility for the wholesale business for the Volkswagen, Audi, Skoda and Volkswagen Commercial Vehicles brands in Ireland will transfer to the Volkswagen Group on October 1, 2008. To facilitate this agreement, a new company named "Volkswagen Group Ireland" will be established in July 2007 by MDL into which the import business will be transferred.

"For us, this demonstrates a clear commitment to the Irish market, which we plan to develop further in cooperation with MDL and Irish dealers for the benefit of our customers", emphasized Stefan Jacoby, Volkswagen AG’s Executive Vice President of Marketing and Sales for the Volkswagen Group. "The gradual transition means optimum integration of the great know-how of MDL management and employees in the new business." Board participation by MDL will continue after the shares in "Volkswagen Group Ireland" have been taken over in October 2008. Furthermore, all MDL employees will continue on the payroll of the new import company. The present dealership agreements with Irish car dealers will also be transferred to the new company. The finance and mobility services of Volkswagen Financial Services AG will in future also be offered on the Irish market.

Motor Distributors Ltd. (MDL), a wholly-owned subsidiary of O’Flaherty Holdings, is the largest Irish auto importer, holding a market share of 16.7 percent of the passenger car market for the Volkswagen, Audi and Skoda brands and a share of 14.4 percent for the Volkswagen Commercial Vehicles brand. MDL has represented Volkswagen since 1950, and delivered some 36,000 vehicles to customers in 2006.