Despite challenges faced by SA investments continue to grow.
This follows huge investment of R4,5billion commitment by VWSA for 2017 new products and infrastructure.
This means new models will the assembled at Uitenhage factory in the next two years.
The estimated R4.5 billion investment includes over R3 billion in production facilities and quality, around R1.5 billion in local supplier capacity and a further estimated R22 million for the development and training of employees.
“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,” says VWSA Managing Director Thomas Schaefer.
Between 2007 and 2014 VWSA invested 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 some 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 current localisation level is around 72% and the new models are expected to have an even higher level of local content.
This will be the first time that a version of the Modular Transverse Matrix platform (MQB) will be utilised in South Africa featuring the latest technologies and driver assistance systems thus built for both local and international exports markets.
MQB stands for the German “Modularer Querbaukasten” translated as Modular Transverse Matrix. The MQB is the company’s strategy for shared modular construction of its transverse, front-engined, front-wheel drive (optional four-wheel drive) vehicles.
Last night at the media cook-off session held at Parktown, the deputy minister of Trade & Industry Mzwandile Masina said the introduction of industrial economy would help to curb the ‘troubled economy’ through creation of sustainable jobs.
“The fact that international investors still, and continue to have confidence in our economy like the VW international, shows we’re doing the right thing, although we must also admit of minor setbacks setting off development in the country.”
“On-going 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,” says Schaefer.
Volkswagen SA has dominated the passenger market for the last five years and continues to do so in 2015 with a year-to-date market share of 21.4%.