Auto Trader sells off its Carzone division in Ireland

Auto Trader has sold off its Webzone subsidiary, which trades as Carzone in the Republic of Ireland, for 30m euros (approx. £26m).

The new owner of Carzone, which is Ireland's second largest automotive marketplace for dealers and private sellers, is print and digital media publisher Mediahuis Ireland, which already owns CarsIreland.ie and Cartell.ie.

Carzone represented on average just 4% of Auto Trader's total dealer forecourt clients, and 4% of its workforce.

Nathan Coe, chief executive of Auto Trader, told AM: “The UK has always been our primary strategic focus, so our teams will double down their efforts to develop the products, data and technology to support retailers and to grow our marketplace

"We will continue to invest in our business to make digital retailing a reality for all our customers, regardless of their size, as we believe this will provide real growth and efficiency opportunities for the industry.”

Coe said Carzone has been part of the Auto Trader group for nearly 20 years, and he thanked its team for their hard work during that time.

He reiterated Auto Trader's aim to grow its UK marketplace and establish the products and technology to enable retailers to do more of the car buying journey online, on Auto Trader.

Earlier this year Auto Trader acquired Autorama, which trades as Vanarama, to expand its operation in the vehicle leasing market.

That came just weeks ahead of its announcement of annual results showing £301m profit from £432.7 sales in its 2021-22 financial year.

Xavier van Leeuwe, chief executive of Mediahuis Marketplaces, said: "We are delighted to welcome the Carzone team into the Mediahuis group. The Carzone brand has a long standing and incredible track record in the Irish automotive space.

"The culture of excellence of its employees is a significant addition to the expertise within our group. Adding to our existing CarsIreland.ie and Cartell.ie brands, Mediahuis will present an unrivalled offering to the entire Irish motor industry, manufacturers, retailers and consumers alike, allowing us to build the business that will lead the industry in years to come."