VOLVO TO CLOSE 60% LOCAL DEALERSHIPS
Luxury car brand Volvo has announced that it plans to reduce the number of dealerships in South Africa.
Volvo Cars South Africa (VCSA) said the number of dealerships will reduce from 19 to seven.
According to VCSA, the decision was made as it forms part of a strategic realignment which aims to align the brand with global trends while also ensuring a better overall customer experience.
With this, the Swedish car brand added that the decision will enable it to commit to advance electrification, digitalization, and sustainability.
The seven dealerships will be strategically located to become high-performing dealers.
A spokesperson for VCSA said the company is working with affected dealers after the Motor Industry Staff Association (MISA) complained that the car company never consulted with the union before the decision was made.
“We are working with the affected dealers to mitigate negative effects on the jobs, even though they are not Volvo employees, and we have no obligation to do so.”
According to MISA, more than 700 of their members will be affected and it has caused panic.
The seven remaining dealerships will be located across Gauteng, the Western Cape and KwaZulu-Natal.
The restructuring is scheduled to be completed by the second quarter of 2025.
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