WATCH: Volvo SA's MD on steering through challenges to rebuild trust and drive change
Image: Supplied
Volvo's new South African managing director, Grant Locke, has just returned from Sweden after eighteen months with a clear mission: to restore customer confidence, strengthen dealer networks, and guide the brand through our country's cautious transition to electric mobility.
Speaking on the sidelines at the launch of the new Volvo EX 30 Cross Country, he said: 'As a South African, I understand the unique culture and mindset here. That gives me an advantage in helping ensure trust in the Volvo brand locally. Right now, my biggest challenge is rebuilding that trust.'
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Dealership restructure
Earlier this year, Volvo embarked on a significant dealership restructure, aimed at improving profitability and aligning the network with market realities, but the move did create uncertainty among customers.
'When a dealership closes, people worry about servicing their cars. Marketing alone can't fix that. We need to ensure approved Volvo service coverage across the country, with trusted dealers who are close enough for convenient servicing, accessory purchases and product expertise.'
First steps
The first steps in this plan are already underway, with a new dealership announced for Gqeberha, and a further two as a work in progress for Nelspruit and Bloemfontein.
'It's about finding the right balance, enough volume through a dealer network to keep them profitable and sustainable, while still being accessible to customers,' he explained.
Locke acknowledges a 'two-speed' challenge. Closing dealers impacts sales, reinstating them doesn't instantly boost numbers, and brand consideration must be rebuilt with the right mix of good products, solid marketing and patience.
Grant Locke, Volvo SA's new Managing Director.
Image: Supplied
SA's electrification journey
On the product side, he admits South Africa's journey toward electrification is progressing cautiously.
'Plug-in hybrids are a stepping stone into EVs, and Volvo must ensure there are options for customers in that space. Although the launch of the XC70 long-range PHEV is currently only for China, I wouldn't be surprised if Volvo considers similar long-range plug-in hybrids for other model ranges.
"Other manufacturers, especially Chinese brands, are already going in that direction. Long-term, though, our strategy is still focused on BEVs,' Locke said.
Resale
One of the concerns about Volvo products is their resale value and the perception that it drops quickly once they leave the showroom.
'Residual values are a concern for every manufacturer. We currently offer a guaranteed future value (GFV) product to help address that, but from my perspective, I'd like to explore more solutions.
'Residual value is a key part of the total cost of ownership, and if you get it wrong, it can overshadow other factors like fuel economy. The GFV helps, but there may be more we can do, and there are global initiatives worth investigating,' Locke admitted.
On a personal level, Locke says that he's here for the foreseeable future to ensure that he addresses the challenges that the brand faces.
'I'm here for the long haul. My wife is starting her PhD at Stellenbosch, so that's at least three years, and my kids are enrolling in school here,' he concluded.
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