BMW Joburg City to halt operations soon

BMW Joburg City, with its landmark dealership in the Newtown, Johannesburg, will close its doors at the end of this month.

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The Legacy Motor Group (LMG), operator of BMW Joburg City, has made the decision to close the dealership. This decision, which was made in consultation with BMW Group South Africa, follows thorough reflection and consideration, considering the evolving market dynamics and operational challenges at this location that have hindered profitable operations, it says in a statement.

Operations at BMW Joburg City will cease on 29 February 2024, and LMG says it will advise customers to source BMW retail and aftersales services at other neighbouring dealerships.

In the statement from LMG, it also addresses the labour issue regarding staff.

“Amidst speculation on social media platforms regarding the Labour Relations process, we wish to clarify that all actions were in strict compliance with Section 189 of the Labour Relations Act. A 48-hour notice for consultation was issued to all employees and the motor industry trade union on Wednesday, 31 January 2024.

“Following this, a consultation session was held, led by our Group Labour Relations Specialist, involving all staff and a motor-industry trade union representative. This session discussed the dealership's financial difficulties, which all staff have been made aware for months, and subsequently led to the conclusion that LMG could sustain this operation.

“Employees were given written notification of their termination dates and severance packages, which were calculated in accordance with the Motor Industry Bargaining Council’s (MIBCO) main agreement.

“Whilst we understand that this process is daunting for our employees, a fair and correct procedure was followed in consultation with the motor industry trade union. We are committed to supporting our employees during this transition and to help them navigate this period of change,” the statement concludes.

  • LMG, founded in 2008, represents five BMW dealerships (BMW Menlyn, BMW Montana, BMW Joburg City, BMW Rustenburg and BMW Polokwane) and three MINI dealerships (MINI Menlyn, MINI Montana and MINI Joburg City).
  • BMW Group brands represented by LMG at present include BMW, BMW i, BMW M, BMW Motorrad (BMW Motorcyles) and MINI (new and approved pre-owned cars). The company is currently on a quest to expand its retail portfolio to other automotive / OEM brands.
  • Other divisions of LMG include LMG Approved Repair Centre (also known as Zambesi Approved Repair Centre), LMG Pre-Owned, LMG Prestige, LMG Tyre and Rim and LMG Finance & Insurance.

A spokesperson for BMW South Africa said to Dealerfloor that they had nothing to add to the LMG statement.

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