With premium brands in South Africa taking the brunt of the economic hardship facing customers, challenges at dealership level are creating a new reality.
With dwindling sales, the likes of the three big German players and others in the segment are forcing motor groups, independent dealerships and the manufacturers to adapt to the new landscape.
The current economic hardship and the mass entering of Chinese brands with their luxury approach connected to a value-for-money offering also play a vital role in the changing of Buyers’ buying patterns.
In a recent interview with Dealerfloor, Brandon Cohen, Chairperson of National Automobile Dealers’ Association (NADA), says several luxury brands are pulling back, rationalising their footprint, sticking to the big centres and more affluent areas.
We reported in February this year on Volvo Car South Africa’s restructuring operations in the country as part of a long-term brand strategic realignment that will see the number of Volvo dealerships decrease.
In a follow-up on this matter, Volvo Car SA tells Dealerfloor that Volvo will remain with four groups in the country: CMH, SMH Bedfordview, Tom Campher Motors and Rola Motors Somerset West.
“They are located in seven different locations across Gauteng, KwaZulu-Natal and the Western Cape. This initial restructure is necessary, but we will evaluate further expansions and other locations as the business grows,” the manufacturer says in a statement.
On the question of dedicated service centres for existing Volvo owners in the areas where the official Volvo dealerships are closing, Volvo Car SA says customers and their experience are of vital importance to them.
“This will have no effect on customers. Currently, warranty and service plans remain active, and we will offer solutions to provide the best service possible to our customers. A dedicated channel exists in our customer care team to handle their needs,” the statement says.
Volvo Car SA said in February that refining its operations — including adjustments to its marketing and commercial strategy — will strengthen how Volvo vehicles are positioned and retailed through the dealer network as Volvo is the top-selling EV brand in South Africa. It recently launched the Volvo EX90, the Swedish brand’s all-electric luxury SUV, in South Africa joining the already substantial EV line-up locally.
Audi South Africa has introduced the new Q5 range, comprising the third-generation Q5 SUV, second-generation Q5 Sportback, and the performance-focused SQ5 SUV and SQ5 Sportback. The range is built on Audi's Premium Platform Combustion and brings a new generation of petrol and diesel engines to the nameplate.
Geely Auto South Africa (GASA) has introduced Riddara, Geely Auto Group's new energy bakkie brand, to the South African market.
Ford’s next big electric vehicle push is less about a dramatic new badge and more about what happens behind factory doors.
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I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
Volvo Cars Century City, a member of the Super Group Dealership family, announced its continued commitment to serving Cape Town with world-class facilities, electrified vehicles, and Volvo’s renowned safety innovations. This is what the manufacturer says about its new dealership.
South Africa's automotive industry is struggling to find the specialised technical skills it needs, even as the country faces high youth unemployment.
That might be the case, but the old pitch might be dead, says AutoTrader, as cars appearing on a buyer’s shortlist may not all have been found through a conventional search.
