The Motor Industry Staff Association (MISA) has raised concerns about job security in South Africa’s automotive sector amid economic pressures and dealership closures.
This follows reports that Volvo Cars South Africa will reduce its dealership network from 19 to just seven nationwide, sparking fears of potential job losses and broader instability within the industry.
The move comes after Volvo previously announced a strategic “review” of its local dealership network, aimed at aligning operations with shifting market demands and the brand’s evolving global direction.
However, MISA's media manager, Sonja Carstens, has accused the company of failing to consult with unions regarding the restructuring process and the potential job losses that could result.
Carstens further revealed that employees have been informed they will now be working for other brands.
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IOL previously reported that Volvo maintained it was committed to a transparent and fair process in all discussions with independent dealers.
"Volvo is supposed to, in terms of section 189 of the Labour Relations Act. They were supposed to notify MISA as the majority trade union to say we intend to restructure, there might be possible job losses, how can we go about saving money?" Carstens said to broadcaster Newzroom Afrika.
"This has not happened at all. We got a notice after our legal department sent out a letter to notify one of the affected dealerships to say we know that there are staff at your dealership that will be affected, you are supposed to take action. We did enter into discussion with that dealership, but that was only last week and we have 19 employees affected at the dealership."
The motor industry is also expected to take a significant hit after US President Donald Trump imposed a 25% tariff on auto imports. MISA said it was concerned about the situation, but emphasised that it was not pressing the panic button just yet.
"MISA is very concerned about the ongoing situation, however, there is no need for panic. We see a lot of Chinese brands coming to our country, very similar to what happened decades ago when Japanese brands started coming to our country.
"So brand loyalty might have shifted from consumers. Where you used to be loyal to specific for instance, Mercedes-Benz or BMW—you will now look for the cheaper option, which will be the new Chinese cars coming to our market." she concluded.
IOL Motoring