Revving down: Car dealership closures hit SA
A major car manufacturer is restructuring its dealership network, leaving only seven branches across the country.
In a significant move, a prominent car manufacturer is closing most of its branches in South Africa, leaving only seven dealerships across the country.
This decision is part of a broader strategic realignment aimed at enhancing the overall customer experience and aligning with global trends.
Volvo Cars South Africa (VCSA) plans to reduce its dealership network from 19 to just seven, with the remaining dealerships strategically located in Gauteng, KwaZulu-Natal and the Western Cape.
The restructuring has sparked concerns about job losses, with the Motor Industry Staff Association (MISA) criticising the company for failing to consult the union beforehand. However, the company has reassured them that no jobs will be lost due to the restructuring.
The company is working with the affected dealers to mitigate negative effects on jobs and has no obligation to do so.
VCSA conducted a nationwide evaluation throughout 2024, considering various factors vital to the brand, including sales potential. The decision on which dealerships to close was based on these aspects, as well as the sales potential for each location.
They have reassured customers that service levels would remain unaffected, with warranty and service plans remaining active.
The company is also engaging with affected dealers regarding financial losses resulting from the discontinuation of sales.
The closure dates for the affected dealerships are being finalised in discussions between the company and individual dealers, with customers to be notified accordingly, reports BusinessTech.
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