Vehicle manufacturer Volvo Con- strution Equipment (Volvo CE) has announced that it is separating its business within Volvo Maroc SA to a long-standing West and Central Africa distribution partner, the SMT Group.
The agreement – which is subject to regu- latory approval – between Volvo CE and SMT, will come into effect in the second quarter of 2016. It covers the sale, importa- tion and distribution of Volvo’s and construction machinery specialist SDLG’s branded construction equipment products and services in Morocco.
“Volvo Maroc has built up the Volvo CE business in Morocco from scratch over the last ten years and benefited from a close association with the strong Volvo Truck brand image in the country,” says Volvo CE Europe, Middle East and Africa sales region president Tomas Kuta.
SMT is already an established Volvo Group partner, with 25 dealerships in Africa and the European Union. It represents Volvo CE in a large part of North and West Africa, including all neighbouring countries of Morocco.
The deal has transferred all Volvo CE businesses and employees to SMT, along with all warranties and customer service agreements. Maintaining the Volvo brand’s strong customer relationships and high- quality service in Morocco is part of the new duties that SMT has to handle.
“We feel that further growth will be achieved by a strong independent dealer, one that can offer the right investments and [offer] the opportunity to develop new business and achieve economies of scale as part of a large group in North and West Africa,” he explains.
SDLG-branded machinery distributor SBMH, in Morocco, will continue to act as distributor under the new direction of SMT.
“We are delighted to take on this challenge, which strengthens our relationship with Volvo. SMT is committed to take the Volvo CE business to new levels, offering the highest standards in service for the success of Moroccan customers,” notes SMT CEO Jérôme Barioz.
Expansion Plans
During the Bauma 2016 Exhibition held in Munich, Germany, earlier this month, Volvo CE president Martin Weissburg said that Volvo CE was responding to the industry’s growing preference for higher- capacity products in the general-purpose machine segment.
He noted that the company did this by launching the 90 t EC950E excavator – which is the largest it has ever launched – and the articulated 60 t A60H hauler.
At the other end of the product spectrum, Weissburg said Volvo CE was responding to the long-term global growth of the compact machine segment with a host of new products, which included the L45H wheel loader – launched at Bauma – and the EC35D compact excavator.
He further affirmed Volvo CE’s commit- ment to providing a competitive product offering in the road segment, which was evident through the launch of the P4820D and SD135B soil compactors that were both launched at Bauma.
“Volvo CE is changing and responding to tough and changing market conditions. We are focusing our investments in products and solutions where we can add real value for our customers and where there is future growth.
“With our strong product line-up, we are well positioned to continue to serve customers in our traditional premium segment, as well as meet the needs of the growing value segment. As always, innovation will drive our thinking and we will continue to be leaders in the fields of integrated offerings, connectivity and electromobility,” Weissburg said.