Volvo has announced that it will be trimming its dealer network. The Swedish automaker will be asking its unprofitable and marginal dealers in the United States to give up their franchises. The cuts are due to slow sales and the weakening U.S. dollar. Volvo currently has 355 stores in the U.S.
“We have dealers losing money this year, last year and the year before,” said Anne Belec, CEO of Volvo’s U.S. sales arm told Automotive News. “If they couldn’t make money two or three years ago, then they are going to really struggle going ahead. We want to talk with them.”
The automaker expects sales to slip by 10% to 15% in 2008. Volvo failed to give an exact number of how many dealers it expects to cut, but hopes to trim its franchises by about 20%.
Recent rumors have suggested that Ford is looking to sell Volvo, but the Detroit automaker says it is holding on to its Volvo brand — at least in the short-term.
