The brand has faced criticism in recent months for its reduction in dealerships, which has led to speculation of it possibly leaving South Africa at some stage.
Volvo Car South Africa’s (VCSA) newly appointed Managing Director Grant Locke has quashed rumours of the Chinese-owned Swedish brand’s imminent departure, saying it remains committed to the local market for the future.
Dealer restructure
Earlier this year, the Geely-owned marque announced a reduction in its dealership network from 19 to seven as part of a major restructuring in part due to weakening sales in the premium segment, focus on electrification and emphasis on major centres reportedly comprising Pretoria, Johannesburg, Cape Town and Durban.
A move that received extensive criticism by the Motor Industry Staff Association (MISA), which represents a reported 66% of Volvo’s dealership employees, the brand subsequently stated it has no plans on leaving South Africa and will continue to invest in the local market.
“VCSA is conducting a strategic review of its dealer network. As the licensor of the Volvo brand, VCSA has been actively consulting with its independent licensed dealers,” the automaker said in a statement to IOL.
ALSO READ: Volvo approves three new models for 2025 and a surprise 2026 arrival
“Any dealers affected by the review will independently evaluate their operational position and commercial strategy. VCSA remains committed to a transparent and fair process in all its discussions with independent dealers.”
Days before, MISA’s media and communications manager Sonja Carstens accused Volvo of not having informed it first before making the announcement, saying it only became aware through the media.
“When you are considering restructuring and there might be a possibility of retrenchments, in terms of our Labour Relations Act, you need to consult with the trade union to see what can be done to avoid possible retrenchments,” Carstens told Moneyweb.
“Of the 700 employees we are in contact with, we know of at least 13 who have no other alternative. They will be redundant after the cut-off date. So, it’s a wait-and-see game to see how they’re going to be accommodated, with Volvo announcing once again in the media that no one will be affected”.
Openings
Addressing the speculations, Locke said the brand’s July announcement of three models debuting this year and one in 2026 shows its commitment to South Africa, backed up by the opening of a new dealership in Gqeberha, Eastern Cape, on 1 October.
In addition, further dealerships will be opened in Bloemfontein in the Free State and Mbombela in Mpumalanga, which Locke says forms the base of its core dealer structure.
Speaking at the unveiling of the EX30 Cross Country last week, as one of the three models debuting this year, Locke confirmed that the restyled XC60 and XC90 will arrive before year end, while the all-electric ES90 will make its premiere in the first quarter of 2026.
NOW READ: Cross Country attired Volvo EX30 aims for EV success off-road
