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VW to invest more than R4.5bn in SA

2015-08-27 13:40

  • R4.5-billion investment in new models
  • New models built on MQB platform
  • 21% Polo imports increase expected

Johannesburg - Thomas Schaefer, managing director of Volkswagen Group South Africa (VWSA), announced the automaker's next phase of investments at its factory in Uitenhage, Estern Cape.

Schaefer said an estimated R4.5-billion investment includes more than R3-billion in "production facilities and quality", R1.5-billion in local supplier capacity and an  estimated R22-million for  development and training of employees.

New models built at Uitenhage will use the automaker's Modular Transverse Matrix platform (MQB), a first for the South African factory.


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.

"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."
VWSA has dominated the passenger market for the last five years and continues to do so in 2015 with a year-to-date market share of 21.4%.

The Polo Vivo and Polo have been the number one and two sellers respectively in the local market since they both were launched in early 2010.


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