GEORGE NEWS - They knew it was coming, but they didn't expect it to be so soon: Kempston Motor Group George will no longer render services to Volvos.

It'll still continue as the official dealer for Isuzu and Suzuki in the Garden Route, however.

Volvo Cars George closed its doors on Friday 4 April, following a decision by Volvo Cars South Africa and Volvo Cars Sweden to cut down its dealership network from 19 new vehicle sales facilities countrywide to only seven in the country's three major metropolitans, namely Johannesburg, Cape Town and Durban.

This restructuring is related to South Africa only, said Michelle Muir, on behalf of Volvo Cars SA. 

Asked what prompted their decision, Muir said the management team visited all the dealerships during 2024 to evaluate various aspects important to the brand. "The decision was based on those aspects as well as the sales potential for each location," said Muir.

For Adstock Traders, the authorised Volvo Trucks Dealer in George, it will be business as usual. The closures only affect the car department of the brand.

Elandré Moore, dealer principal of Kempston Motors George, says this is going to have a pretty big impact on Volvo owners in George and surroundings. "The nearest Volvo branch for sales and aftersales service will now be in Cape Town," says Moore.

As for the closure of Volvo Cars George, Moore says it was a bit of a shock, but expected. "We just didn't know it would happen so quickly."

On a question why Volvo Cars SA decided to close down so many dealerships, Muir said Volvo Car South Africa is restructuring its operations as part of a long-term brand strategic realignment. "We are fully committed to the South African market. This commitment is evident in the continued investment in electrified mobility and the introduction of new models.

"In 2024, the recently launched Volvo EX30 was the best-selling EV, helping the brand consolidate as the leader in EVs in South Africa. As Volvo refines its operations - including adjustments to its marketing and commercial strategy - this will strengthen how Volvo vehicles are positioned and retailed through the dealer network. Looking ahead, Volvo will continue to expand its local lineup with new product launches scheduled for 2025."

Blindsided

New Volvo owners Andy and Jackie Thomas say they would never have invested in a Volvo had they known what was coming. "We are moving to George from Johannesburg in the next year, and only recently found out that we will have to travel from George to Cape Town for all our services," said Andy.

"This is really rough, because even if you plan to stay a day in Cape Town while your car is in for service, there might be something that needs to be fixed, parts they have to order, and you could end up staying in Cape Town for a number of days. This is not only inconvenient, but very expensive."

The Thomases purchased their vehicle at CMH Volvo Cars Fourways in Johannesburg in February.

New Volvo owners Andy and Jackie Thomas purchased their vehicle at CMH Volvo Cars Fourways in Johannesburg in February.

Electrification

Volvo Cars SA previously noted in an article by the online publication BusinessTech (22 March 2025) that this decision aims to align the brand with global trends and ties in with their commitment to electrification, digitalisation and sustainability. 

In its latest article on 5 April, Malcolm Libera of BusinessTech reports that the restructuring, announced at the end of February, has sparked some backlash, particularly from the Motor Industry Staff Association, representing more than 66% of Volvo's dealership employees.

In response to concerns about employment, Volvo Cars SA reassured BusinessTech that no employees are expected to lose their jobs due to the restructuring.

On a local level, this has been confirmed by Moore, who said the Volvo George staff members are incorporated into their Isuzu and Suzuki agencies.

Porsche

Another major car brand, Porsche, is reducing its dealership network in China by closing approximately 30% of its dealerships around 40 locations, due to weak demand and challenges in the market, particularly with the shift towards electric vehicles. Porsche operates 138 dealerships in China, but they will be reduced to around 100 by the end of 2026 (www.carscoops.com).

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