A welcome announcement by VWSA
A welcome announcement by VWSA – the local car manufacturer plans to invest R4.5 billion+ in its South African plant’s infrastructure and products
Volkswagen Group South Africa has announced that it would invest locally, in the plant’s infrastructure and products.
Local car manufacturers need to increase local production
Last week, in our article on what effect the depreciating Rand has on new car prices, the mentioned solution to contain the exchange rate challenge was for local car manufacturers (those who manufacture cars in South African factories) needing to increase their local parts content, relying less on imported parts.
Huge investment in local VW factory
The VW Board in Germany green-lighted this massive injection, so it is great to learn of Volkswagen’s confidence in the local manufacturing capabilities… in its people who build these People’s Cars – the South African Volkswagen factory in Uitenhage, Port Elizabeth, will receive investment of more than R 4.5 billion (that’s R 4 500 000 000 +).
The next phase of major new investments were announced by the Managing Director of Volkswagen Group South Africa (VWSA). This massive injection into the local economy would be in the VW factory, as well as its suppliers, and towards training of local VW employees to build future Volkswagen products.
Of this investment, R 3 billion plus will be fore production facilities and quality (which VW is always serious about maintaining) and about R 1.5 billion for local suppliers, with around R 22 million employee training investment. The full investment would be phased in by 2017.
Welcome to the Matrix – first time for South Africa
The VW MQB platform, which translates from German as Modular Transverse Matrix platform, will be built right here in South Africa for the first time. This advanced MQB will feature the latest technologies and driver assistance systems.
Built for local and export
VWSA’s Uitenhage plant already builds Polo Vivo for local supply, and the Polo for local and export markets – about 66 000 Polo in right-hand-drive build is expected to be exported in 2015, which is 21% more than 2014. Well done VWSA!
The new MQB platform will also be for both South Africa and for shipment to other countries.
This strategy and investment will boost and secure local VW manufacturing, meaning stable local employment for suppliers and employees of VWSA.