“We have identified the increased population in the area and the need for another service and parts workshop in the Gauteng region,” says Torbjorn Christensson, president, Volvo Group Southern Africa.
The company has also taken the decision to sell two of its dealerships, namely Polokwane and Port Elizabeth. The move to sell these dealerships forms part of the company’s decision to have a combination of dealerships that are wholly owned as well as some that are franchised. “There are many benefits of this approach such as capital investment by the buying companies to improve the operations, which will result in improved facilities for both branches. We have partnered with companies who we believe will contribute to the image and brand-building of Volvo Trucks Southern Africa,” says Christensson.
One of the criteria in the agreement was also done in line with improving the company’s broad-based black economic empowerment (B-BBEE) ratings. “We have made massive in-roads in areas such as management control and supplier development, however, the one area that has always eluded us is ownership. Previously our efforts were hindered, however, after a series of meetings between various stakeholders including Government; we are now able to transfer ownership of two of our wholly owned dealerships to B-BBEE companies,” says Christensson.
Volvo Polokwane has been acquired by a company called Lereko Motors. The group was established in 2004 as a black-owned investment company, with the founders being Popo Molefe, Valli Moosa and the late Eric Molobi, adding to the credibility of its staff complement was the appointment of Lulu Gwanga as chief operating officer (COO). Lereko Motors have partnered with the Imperial Group to manage the dealership on their behalf. At present the planned date for the transfer of ownership is set for 1 October 2016. The Polokwane dealership will continue to operate at its current premises for a month or two while new premises are being renovated for them.
Similarly the Port Elizabeth franchise will remain in its current location for a year while a new custom designed site is constructed for them and will contribute to the upliftment of Nelson Mandela Bay’s development projects. The Port Elizabeth franchise will also be owned by a black-owned entity and managed by Billson Trucks. Billson’s has an extensive regional footprint and operates in an area that is bordered to the northeast, north and west by East London, Graaff-Reinet and Knysna. The new site will bring investment to the value of R100 million.
Volvo Trucks will have a network of 19 workshops in South Africa of which seven are independently operated.
