VW South Africa to invest R4,5 billion to build new models at Uitenhage factory

27 August 2015 - 18:08 By RDM News Wire

Volkswagen Group South Africa (VWSA) said on Thursday it would invest more than of R4.5-billion for new models to be produced at its Uitenhage factory by 2017. At a media briefing in Sandton‚ VWSA MD Thomas Schaefer announced the next phase of major new investments in the Uitenhage factory‚ its supplier base and the training of employees for the next generation of products to be manufactured in South Africa.The estimated R4.5-billion investment includes more than R3-billion in production facilities and quality‚ about R1.5-billion in local supplier capacity and a further estimated R22-million for the development and training of employees.“This will be the first time that a version of the Modular Transverse Matrix platform will be utilised in South Africa featuring the latest technologies and driver assistance systems. This will be built for both the local and export markets‚” VVWSA said.Schaefer also used the opportunity to update the media on various aspects of the motor industry and VWSA's performance in the local market."South Africa is not a logical production location for the motor industry as only 0.6% of the world's vehicle production is situated here‚” said Schaefer."However due to the strategic location and the potential of Africa as a future market for exports‚ as well as the security that the APDP (Automotive Production and Development Programme) provides for investors‚ ongoing investments in our vehicle manufacturing base makes sense. Hence the decision by our parent company to allow us to embark on such a major new investment.“Exports will again play a key role in our strategy going forward."We are very grateful to the board in Germany for this vote of confidence in our country‚ management and employees and we will ensure that we deliver on our commitments."Between 2007 and 2014 VWSA invested about R5.9-billion in South Africa; this was for the current generation Polo and Polo Vivo as well as plant and infrastructure.The Polo is also produced for exports and about 66‚000 4-door Polo's are expected to be exported to mostly right hand drive markets in 2015‚ a 21% increase over 2014.The Polo Vivo and Polo have been the number one and two sellers respectively in the local market since they both were launched in early 2010.The current localisation level is about 72% and the new models are expected to have an even higher level of local content.VWSA had dominated the passenger market for the last five years and continued to do so in 2015 with a year-to-date market share of 21.4%‚ VWSA said."Ongoing investment in new technologies and products will ensure that Volkswagen is positioned to continue to be the dominant player in the South African passenger market‚" said Schaefer...

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