smc parts company as volvo dealer

With the premium car segment taking a beating due to the financial crisis, the prospects for European auto companies look uncertain.

SMC Motors announced its decision to withdraw as an authorised Volvo dealer in Thailand by mutual agreement with Volvo Car (Thailand).

Paul Stokes, the president of Volvo Car (Thailand), said, "It is sad, but I respect the decision of SMC. I would like to thank them for their contribution to the Volvo brand over the years."

Stokes added: "With four major Volvo car dealers in the Bangkok metropolitan area, there is more than enough service capacity to ensure that there will be no material impact on Volvo Car Thailand's customers and we shall, of course, help SMC manage the transition as smoothly as possible."

SMC Motors was the importer of Volvo passenger cars in Thailand for 25 years. Following the rescue by Volvo Sweden during the 1997 financial crisis, it became the largest Volvo dealer with outlets in Bangkok, on Sukhumvit Road and Soi Pramuan, Silom Road.

Volvo cars saw sales for October fall 6.6 per cent compared to the same period last year. For the first 10 months of this year, however, the company has increased sales by 16 per cent compared to last year. October was the first month showing a clear drop in sales in the premium market.

For the month of October, Mercedes Benz and BMW saw sales drop 50.9 and 20.3 per cent respectively.

While none of the premium auto-makers have stated any plans to lay-off staff, all have stated that next year will be extremely diffcult, especially if the political situation in Thailand does not get better.