BMW Joburg City, with its landmark dealership in the Newtown, Johannesburg, will close its doors at the end of this month.
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.
A spokesperson for BMW South Africa said to Dealerfloor that they had nothing to add to the LMG statement.
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