Volvo Car SA: Latest on dealership restructuring

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.

• Volvo Car SA and Volvo Group, while they share a common origin, name and brand, are owned by different holding companies. Volvo Car and Volvo Group have been separate entities since 1999, when Volvo Group sold Volvo Car to Ford Motor Company and in 2010, Volvo Car was acquired by Geely Holding Group later.