Volvo CE divests Moroccan dealership to SMT Group
Volvo to hand over the distribution of Volvo and SDLG brands to long-term Moroccan partner, SMT
Volvo Construction Equipment (Volvo CE) has announced that it is divesting the business of Volvo Maroc to a longstanding distribution partner SMT Group.
Subject to regulatory approval, the agreement between Volvo CE and SMT Group is expected to come into effect in the second quarter of 2016 and cover the sale, importation and distribution of Volvo and SDLG branded construction equipment products and services in Morocco.
SMT Group is an established Volvo partner, with 25 dealerships in the EU and Africa. Today it represents Volvo CE in much of North and West Africa, including all of the countries neighbouring Morocco.
Under the deal, existing Volvo CE employees will transfer to SMT, along with all warranties and customer service agreements, maintaining Volvo’s customer relationships and service in Morocco.
“Our colleagues at Volvo Maroc have built up the Volvo CE business in Morocco almost from scratch over the last 10 years and benefited from a close association with the strong Volvo Truck brand image in the country,” said Tomas Kuta, president of Volvo CE’s Middle East and Africa sales region.
“We now feel that further growth would be best achieved by a strong independent dealer, one that can offer the right investments and give the opportunity to develop new business and achieve economies of scale as part of a large group in North West Africa.”
Meanwhile, SBMH, the distributor of SDLG branded products in Morocco, will continue to act under the new direction of SMT.
Jérôme Barioz, CEO of SMT added: “With a lot of respect for what has been achieved so far by the Volvo teams, we are delighted to again strengthen our relationship with Volvo. SMT is committed to offering the highest standards in services for the success of the Moroccan customers.”