THIS CAR COMPANY JUST INVESTED R4 BILLION IN SOUTH AFRICA
Today, Volkswagen Group Africa announced an investment of R4 billion in South Africa at its Kariega manufacturing plant. It is understood the majority of the investment will be spent on refurbishment of production facilities, local content tooling and quality assurance.
Moreover, Volkswagen’s investment of R4 billion in South Africa will also prepare the plant to manufacture a new SUV model from 2027 onwards. The group says this investment reaffirms the company’s long-term goal to establish a major footprint on the African continent. What it terms the ‘final frontier’ for mobility. It’s also worth this brings Volkswagen’s investment into Kariega to R10.2 billion since 2011.
VW INVESTS R4 BILLION IN SOUTH AFRICA
Delving deeper, nearly R877 million will be spent to enhance automation in the plant’s Body Shop. Similarly, R418 million will be utilised for new press tooling. And the facility upgrade is set to kick off at the end of 2024 during the plant’s annual shutdown.
Also, Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, said the investment reaffirms the group’s commitment to South Africa. Where it has been manufacturing vehicles for nearly 73 years.
“Plant Kariega is an important manufacturing plant within the Volkswagen Group. Since 2011, Volkswagen has invested billions in our facilities. And the new investment is a vote of confidence in the future of the plant. It also future-proofs jobs for our people and those employed in our supplier network,” explained Biene.
WHAT ABOUT THE NEW SUV MODEL?
Furthermore, the new model – the third produced at the plant – will be manufactured on the same production line as the Polo and Polo Vivo. Both are currently top-selling passenger cars in South Africa. Volkswagen Brazil is currently leading the design, engineering and development of the new compact SUV.
However, Volkswagen Group Africa’s engineering team is collaborating with VW Brazil for adaptation to Africa’s unique continental requirements. Like the local-is-lekker Polo and Polo Vivo, the new SUV will aim for 40% local content through a R1.2-billion investment in local suppliers.
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2024-04-16T14:36:02Z dg43tfdfdgfd