VWSA to invest a further R560-million in SA

Volkswagen of South Africa (VWSA) announced that it would invest a further R560-million in South Africa, with R500-million being invested in its Uitenhage plant and R60-million in the construction of a new dealer training academy in Midrand, Gauteng.

The R500-million would be used to build a new press shop at the Uitenhage plant and construction would start in the fourth quarter of this year. Construction of the training academy would also start around the same time.

Volkswagen’s global CEO, Dr Martin Winterkorn, was at the opening of VWSA’s parts and accessories distribution centre in Midrand and highlighted the importance of VWSA’s continued drive to increase local content of vehicles manufactured in SA.  The local content of the Polo and Polo Vivo would in particular increase from an already healthy 40% to an impressive 70%, by the end of the year.

Winterkorn said that the German vehicle manufacturer aimed to be the world number one vehicle manufacturer by 2018 – a position it was already close to achieving as it tussled with Japanese power-house Toyota for pole position.

“South Africa plays an important role in these efforts,” said Winterkorn.

He added that Volkswagen had already invested R5-billion in VWSA’s operations over the last four years.

Reported by Engineering News

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