Volkswagen Group Africa has proven its commitment to South Africa by investing R4 billion to upgrade its facilities in preparation for future models.
The group announced that the R4 billion investment will be allocated to spruce up production plant in the Eastern Cape, beginning during the plant shutdown scheduled for the end of 2024.
Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, said Plant Kariega is an important manufacturing plant within the Volkswagen Group production network. Volkswagen has invested R10.28 billion in Plant Kariega since 2011.
The group is preparing the plant to manufacture an SUV model on the same production line as the Polo and Polo Vivo, which are among SA’s top-selling passenger models.
Biene added: “South Africa is an important market for the Volkswagen Group, particularly in terms of our long-term goal to establish our footprint on the African continent, which is seen as the last frontier for automotive development. As such, we have recently renamed our local company to Volkswagen Group Africa, to represent our steering responsibilities and ambitions to grow the Volkswagen brand on the continent. The new model has the potential to be sold in other African markets where Volkswagen has a presence.”
The group will continue to produce and sell vehicles with internal combustion engines (ICEs) for the foreseeable future, owing to customer demand for ICEs and slow introduction of electric vehicles in these markets, added Biene.
