Fin24 reports that Swedish automaker Volvo Cars SA (VCSA) has announced plans to conduct a "review" of its local dealership network, raising concerns about the possibility of permanent dealership closures and potential job losses.
In a statement this week, a spokesperson for VCSA said while the plan had not been finalised, it "has been actively consulting with its independent licensed dealers. 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." However, no details were given about any potential job losses and how many dealerships wwouldill be impacted by the review. Meanwhile, the news of a possible restructuring has come as a shock to the motoring industry. Trade union, the Motoring Industry Staff Association (MISA), which represents 66% of VCSA's employees, claims that no Section 189 or retrenchment process has been initiated. MISA spokesperson Sonja Carstens said that union members and dealerships were "surprised" and "taken aback" to hear via media reports that the company was restructuring. She said that employees were currently panicking about whether or not they would lose their jobs.
- Read the full original of the report in the above regard by Na'ilah Ebrahim at Fin24 (subscription or trial registration required)
- Read too, Volvo Car SA conducting ‘strategic review’ of its dealer network, at Engineering News
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