Volvo Car South Africa (VCSA) says it 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,” says the company in a statement.

“VCSA remains committed to a transparent and fair process in all its discussions with independent dealers.”

VCSA’s statement comes after days of speculation on the future look of the premium brand’s local dealer network.

Volvo originates from Sweden, but is majority-owned by Geely, in China.

Volvo at the end of last year postponed its global target of becoming an all-electric brand by 2030.

The group now aims for 90% to 100% of its global sales volume by 2030 to consist of electrified cars, meaning a mix of both fully electric and plug-in hybrid models – in essence, all cars with a cord.

The remaining percentage will allow for a limited number of mild hybrid models to be sold, if needed.

This means that pure internal combustion engines, still by far the most popular vehicles on sale in South Africa, will no longer be part of Volvo’s new-car line-up from 2030.

This said, VCSA claimed the title of South Africa’s favourite electric vehicle manufacturer last year, even if sales volumes were rather small.

In 2024, it topped the charts for overall electric vehicle sales and the best-selling nameplate.

Leading the charge was the Volvo EX30, with 406 units sold during the year.

South Africa’s premium segment has also seen sharply declining sales.

A steep buying-down trend has heavily impacted the premium market, where sales were down from 34 428 units in 2023, to 30 634 units last year.

In 2020, premium cars had a 13% share of the passenger-car market, dropping to 9% in 2024, this according to auto research specialist Lightstone.

VCSA did not comment on whether its parent company’s electrification strategy and/or South Africa’s tough economic conditions had anything to do with its dealer network review.

The Motor Industry Staff Association (MISA) has condemned VCSA’s restructuring process, which it says will result in some dealerships closing their doors.

MISA operations CEO Martlé Keyter says Volvo failed to notify MISA, the majority trade union representing more than 66% of VCSA’s employees, of its planned restructuring in terms of Section 189 of the Labour Relations Act. 

Truck Group Not Affected
Volvo Group Southern Africa says there have been various media reports and social media posts wrongfully linking the truck company to VCSA.

“Volvo Group Southern Africa and VCSA are not the same company, not locally and also not globally,” noted the company in a statement.

Volvo Cars and Volvo Group have been separate entities since 1999, when Volvo Group sold Volvo Cars to Ford Motor Company. Volvo’s car business was acquired by the Geely Holding Group in 2010.

“Volvo Cars and Volvo Group, while they share a common origin, name and brand, are distinct entities owned by different holding companies.

“Volvo Group Southern Africa currently employs 750 staff members and has a truck assembly plant in Durban, KwaZulu-Natal.

“Volvo Group Southern Africa implores all to refrain from linking Volvo Group, Volvo Trucks, Volvo Bus, Volvo Penta, Volvo Financial Services or the Volvo Group Assembly Plant to the announced plans of VCSA, which is a separate legal entity.”