Volkswagen Group South Africa has announced plans to invest more than R4.5 billion by 2017 for new products and infrastructure
Managing Director, Thomas Schaefer, made the announcement at a media briefing in Sandton on Thursday.
He said the money will be spent on major new investments in their Uitenhage factory; on their supplier base and also the training of employees for the next generation of products to be manufactured in South Africa.
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.
Schaefer also announced that "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. This will be built for both the local and export markets."
"Further details will become available once VWSA announces which new models will be produced at the Uitenhage plant."
The VWSA boss said between 2007 and 2014 VWSA invested some R5.9 billion in South Africa for the current generation Polo and Polo Vivo as well as plant and infrastructure.
Schaefer said "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," he added.
Updating the media on various aspects of the motor industry and VWSA's performance in the local market, Schaefer said "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."
"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 provides for investors, on-going 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," Schaefer added.
"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."
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