Indongo Toyota's General Manager, Willem Baartman, said economic pressures had forced the closure of the car dealership.

On Friday, the union and management agreed on a severance package: each worker will receive a severance allowance equal to one week's salary for every year worked.

Baartman declined to elaborate on possible retrenchments at Indongo Toyota's Walvis Bay branch.

"I do not want to go into detail, since it can jeopardise operations at the Walvis Bay branch," he said.

A statement is expected today.

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