Paul Issa, deputy chairman of the Issa Transport Group (ITG), confirmed this week that his company would no longer be the dealer for luxury Audi in Jamaica once its current contract ends, while at the same time conceding the his company was going through a rough patch.

Issa said ITG had chosen to give up the dealership.

"We are continuing with the service side, and taking special orders for vehicles, but we are not stocking inventory on Audi anymore," he said Tuesday, amid reports of low sales for the brand, which sells for upwards of J$5.7 million in Jamaica.

He did not specify the period remaining on the contract.

ATL group deputy chairman, Christopher Zacca dismissed as false the report of a pending deal with Audi to take over the dealership even as different sources say talks are underway.

"I will not comment on that," Zacca said.

The Issa Transport Group, which includes Prestige Motors, Motor Sales and Service and Euro Star, reportedly had a difficult year, which the deputy chairman acknowledged at the same time insisting that he will not discuss his company's numbers.

"Regarding the sale of the group, that's not on the books," Issa said. "Regarding the profits of last year, like everyone else it was a difficult year, but we are a private company and we don't discuss our profit and loss figures," he said.

"Like everybody else we had a tough time with the recession and the fall out in the market."

The fall-off is not unique to ITG in a new car sector where the industrywide decline has bled into 2009.

The Automobile Dealers Association reported a 'dramatic' fall in sales at the top of the year from an average 500 per month in 2008 to about 200 per month so far this year, according to ADA president Kent LaCriox.

At ITG, staff and managers, said Issa, all took a "temporary reduction" in salary, until the economy turns and sales pick up.

Regional sales volume

In 2007, Audi's Latin American division said Jamaica accounted for close to two per cent of regional sales volume, with 61 units sold that year - a nine per cent increase over 2006.

A year ago, Audi had laid claim to about 17 per cent of the premium market in Jamaica with other German brands Mercedes Benz ahead at 29 per cent and BMW on top with 54 per cent.

While Issa would not confirm current sales numbers, he insisted other ITG brands had held their own, with Mercedes Benz as the top performer in 2008.

"Mercedes had a strong year," he said.

"We have not done badly in terms of sales, but it was a rough year."

Still, he insists that the brand "was still vibrant".

"While we are going through this tough time, I think Mitsubishi, Mercedes and Volkswagen all have strong futures here in Jamaica," Issa said.

business@gleanerjm.com