By Jodi Schwan

Volvo is coming to Sioux Falls.

Graham Automotive is bringing the brand to town and will convert part of its property on West 41st Street near Norton Avenue into the new dealership and servicing area.

“It fits well for us,” owner Al Larimer said. “It’s a very successful, thriving company, and they’ve got a nice lineup of cars and a full array of all-wheel-drive sedans, wagons and sport utilities.”

The 17,000-square-foot Volvo dealership will include space to park about 150 vehicles, including some certified pre-owned ones.

Larimer has been looking at bringing a dealership for the Swedish automaker to Sioux Falls for several years.

“We sent a prospectus of what we plan to do in Sioux Falls with Volvo and what we thought the market would support, and they saw merit in the proposal, and here we are today,” he said.

The closest Volvo dealership is in Omaha. There are about 500 Volvo vehicles licensed in Sioux Falls, Larimer said.

“Obviously, we hope to increase that substantially.”

Graham also plans to expand its body shop by 10,000 square feet and add a detailing department, Larimer said. And the dealership is adding a sales office west of the Volkswagen and Audi dealership at 901 W. 41st St.

“All our used cars will be located there, as they are now, and there will be a permanent office building there by the end of the year,” he said.

Remodeling work has started on the Volvo building, which is on the east end of Graham’s property. The plan is to start selling Volvos there by the end of August.

Volvo fits well in between Volkswagen and Audi price points, Larimer added, and the brand plans to ultimately compete head-to-head with top luxury brands such as Mercedes-Benz, Lexus, Audi and BMW.

The addition of Volvo leaves Sioux Falls with only a few missing names in the auto industry. Lexus, Infiniti and Jaguar Land Rover don’t have dealerships in town but may eventually, Larimer said.

“The biggest reason most manufacturers don’t want to come to Sioux Falls is the size of the market,” he said. “They look at registrations each year and have very specific demands as it relates to buildings and footprints they have in a market. If they don’t see the opportunity for a profitable venture, they just won’t come.”