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BusinessNews

Takeover announced at iconic Donegal dealership

written by Rachel McLaughlin November 20, 2019
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Connolly Motor Group has today announced an agreement to acquire the assets of J.J. Reid Motors in Donegal.

J.J. Reid Motors, based in Letterkenny, is North Donegal’s main Volkswagen dealer.

The company traces its origins back to 1962, when the late politician and businessman JJ Reid founded a filling station in Stranorlar. The company joined the Volkswagen Group as its Service Dealer in 1963, the company was then appointed main dealer for north Donegal in 1964. Mr Reid passed away in January 2019 at the age of 86.

Connolly Motor Group has heralded the takeover of assets at JJ Reid Motors as a strategic acquisition for the business.

The company anticipates that it would grow staff numbers in Letterkenny from 12 to 21 as it builds on its investment.

Kevin and Neil Connolly of Connolly Motor Group

The acquisition remains subject to approval of the Competition and Consumer Protection Commission.

The acquisition of the Volkswagen dealership in Donegal, if approved, would increase the number of full-time employees at Connolly Motor Group to almost 300.

The acquisition would see the motor group – which is one of the biggest in the country and run by brothers Kevin and Neil Connolly — expand its representation with Volkswagen Group brands.

It already runs hugely-successful Volkswagen dealerships in Ballina and Sligo as well as Audi dealerships in Galway, Ballina and Sligo. And it announced over the summer that it is to open a new SEAT dealership in Sligo in October.

Neil Connolly, Connolly Motor Group Director, said: “With existing Volkswagen dealerships in Mayo and Sligo, Connolly Motor Group has a great relationship with VW and our significant knowledge of the brand ensures our customers benefit from the very best offers and services.

“The acquisition of J.J. Reid Volkswagen would be a strategic acquisition for our business, further strengthening our offering to our customers in the region and creating economies of scale in a highly-competitive market. Being part of a group provides us with the additional benefit and financial stability that comes with having multiple dealerships.

“We are proud to be a family-owned group, and the foundations of our success are the people who work with us, the manufacturers we represent and, of course, our valuable customers who are at the heart of everything we do.”

Volkswagen Ireland Brand Director Gerrit Heimberg said: “The North West is a very important region for Volkswagen. And we would like to thank the staff of JJ Reid’s for serving this area so well in the past number of years. But the Volkswagen brand remains in safe hands thanks to the appointment of Connolly Motor Group. Volkswagen has a long-standing relationship with this motor group, and we know they will ensure a smooth transition for existing JJ Reid’s customers to the new Connolly’s Letterkenny business. They will, no doubt, continue the success and professionalism they bring to their Ballina and Sligo businesses.”

Takeover announced at iconic Donegal dealership was last modified: November 20th, 2019 by Rachel McLaughlin
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Rachel McLaughlin

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