The Volkswagen Group will take control of the distribution of its brands in Ireland next year.

Motor Distributors, the current distributor of VW, Audi and Skoda in Ireland, will be turned into a new company called Volkswagen Group Ireland on October 8, 2008.

Under the new agreement, all of Motor Distributors staff will transfer to the new company.

VW said there will be no job losses or changes in employment terms and conditions for its 120 workers as a result of the move.

Motor Distributor first acquired the franchise to distribute the Volkswagen Beetle in Ireland in 1950.