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Bold and Transformative. That is how the Minister of Trade, Industry and Competitions, Ebrahim Patel, described the R4bn investment announcement by Volkswagen Group Africa on Tuesday.
Patel was among the dignitaries at the WVA plant in Kariega where managing director, Martina Biene, declared their ongoing commitment to their employees, customers, suppliers and indeed the province and the country.
She said the massive investment was for the future production of a compact SUV at the Kariega plant, and also follows the announcement that VWA will be the sole global producer of Polo vehicles from 2027.
“SA is our home. VW is part of the social fabric,” Biene said.
The German marque’s commitment to South Africa and Africa was also underscored by the remarks by Ambassador Andreas Peschke who described the relationship the company has with the country as a “story of love.”
He said VW “continues to stay” with SA in good and difficult times, adding that problems are solved by working together.
Ambassador Peschke noted that the company lost eight days of production last year due to load shedding, but said “we are here today.”
He said other German automakers, like MBSA in the Eastern Cape and BMW in Gauteng, were equally committed to South Africa.
Our #VolkswagenGroupAfrica leadership is joined by esteemed delegates from the Metro, Provincial and National Government, as well as NAAMSA (which is also celebrating 100 years in 2024) on our factory floor.#VWGAInvestment pic.twitter.com/cNHrYesNAP
— Volkswagen Group Africa news (@VWGAnews) April 16, 2024
Nelson Mandela Bay executive mayor, Gary van Niekerk, also lauded the investment announcement saying the city enjoys the vote of confidence.
Eastern Cape Premier, Oscar Mabuyane, said it was a day of “tremendous joy” for the province. He said this investment adds to the more than R171bn in investments in various sectors in the province over the past four years.
He said VWA was showing “leadership” at a time when the country needs it most.
Minister Patel noted that SA enjoyed around R50bn in investments in the automotive industry since 2019, with major manufacturers like Stellantis looking to build a plant in the Eastern Cape.
Meanwhile, Biene said "plant Kariega" was an important manufacturing plant within the Volkswagen Group production network.
"Since 2011, Volkswagen has invested R10.28 billion in production facilities, manufacturing equipment, local content tooling and training people.
"The new investment is a vote of confidence in the future of the plant. It also futureproofs jobs, not only for people, but also those employed in our supplier network," she explained.
VWA said most of the R4 billion investment would be allocated to capital expenditure for production facilities, manufacturing tooling, local content tooling and quality assurance.
