Volkswagen Group South Africa completes major investment programme

Volkswagen Group South Africa completes major investment programme

25.01.2018: ...and launches new VW Polo Photo Caption : Premier of the Eastern Cape, the Hon. Phumulo Masualle; Chairman and Managing Director of Volkswagen Group South Africa

...and launches new VW Polo


 

Photo Caption  : Premier of the Eastern Cape, the Hon. Phumulo Masualle; Chairman and Managing Director of Volkswagen Group South Africa, Mr. Thomas Schaefer; Deputy Minister of Trade and Industry, the Hon. Bulelani Magwanishe; MEC for Finance, the Hon. Sakhumzi Somyo




•    Volkswagen Group South Africa (VWSA) invests R6.1 billion since 2015 in new products, plant and suppliers, to develop local content


•    New Polo launched for both the domestic and international markets


•    Both new models manufactured on one production line


•    A third shift to be introduced from April to meet expected demand




Volkswagen launched its new Polo and showcased the R6.1 billion investment in its plant and new products, in the presence of Eastern Cape Phumulo Masualle, the honourable Deputy Minister Bulelani Magwanishe of the DTI, media representatives and key stakeholders.



In August 2015, VWSA Chairman and Managing Director, Thomas Schaefer announced an investment of around R4.5 billion rand in new product and facilities. The total investment exceeded R6.1 billion rand, which is partially due to exchange rate fluctuations and the approval of additional plant investments.



The majority of the investment spend was on Capital Expenditure for production facilities, local content tooling, quality assurance and manufacturing equipment as well as Information Technology upgrades.



Localisation remains a key priority for VWSA, with the new models at a 60% local content level, with on-going plans to achieve higher levels.



Volkswagen introduces the innovative One-line Concept for the first time as part of the investment; traditionally vehicles are assembled on unique production lines. It has always been possible to build derivatives of the same platform on one line, but to build two completely different platforms on one line is a technical challenge, highly complex and requires new thinking and training for the employees.



The introduction of the one line concept also includes a new integrated logistics concept. Whilst there are no short term financial benefits there are synergies and efficiencies as well as people benefits that come about as the result of the one line concept.



Volkswagen is the only vehicle manufacturer which has the words "car" and "people" in its name. This remains relevant and true today. In line with being a socially responsible employer VWSA did not release any employees as the production volumes decreased during the ramp up, but rather retained them in training pools until the third shift commences in April, this year.



VWSA produced 110 000 cars last year, this will increase to 133 000 for 2018 of which 83 000 will be exported to markets around the world. This will include not only right hand drive markets but also to some left hand drive markets, especially for the Polo GTI. Maximum annual plant capacity is expected to be reached with a 3 shift operation of some 160 000 vehicles, in 2019.



Basic economic fundamentals and an investor friendly legislative framework within a reasonably stable economic environment are essential when making major investment decisions for Volkswagen, as is a stable and attractive automotive policy.



 "The South African Government must be complimented, firstly for the introduction of the MIDP, which gave confidence to the industry and provided a stable base for the successor programme; the APDP which has also been successful in ensuring a future for the automotive sector in South Africa. T




he Automotive Sector of the South African economy accounts for approximately 7.4% of the GDP and accounts for the direct employment of 113 000 people. I am convinced that the next phase of the APDP will continue in the same vein and allow for continued automotive investment," said Thomas Schaefer, Chairman and Managing Director of Volkswagen Group South Africa.




The Premier of the Eastern Cape Phumulo Masualle said ''The automotive sector is one of the key sectors in our provincial economy mix, which we believe, alongside the Oceans Economy, Agriculture and Energy, if correctly leveraged, can see the Eastern Cape Province not only grow the regional economy and contribute towards further national economic growth but also become a leader in the drive to modernise and re-skill our work force.



 We are particularly encouraged by Volkswagen South Africa's commitment to not only their continued and expanding investment in the South African economy, but also bold initiatives such as the announcement of an R86 million grant to SMMEs located in the manufacture and distribution space of automotive parts.



This is a clear signal of the private sector accepting that South Africa's future prosperity will depend on the societal effort all of us are prepared to invest, not just Government. We hope to continue our partnership to undertake a skills revolution in our province by jointly entering into training ventures so that we may be able to improve our skills base as an economy but also increase the employability and entrepreneurial prospects of our people."



Photo Caption  : Premier of the Eastern Cape, the Hon. Phumulo Masualle; Chairman and Managing Director of Volkswagen Group South Africa, Mr. Thomas Schaefer; Deputy Minister of Trade and Industry, the Hon. Bulelani Magwanishe



Deputy Minister Bulelani Magwanishe of the DTI commented "As the government, our commitment to local vehicle production is supported in our Industrial Policy Action Plan (IPAP); with a prime focus on adding value in the manufacturing and industrial sector.



 Export promotion, job creation and inclusive growth remain as the fundamentals of this policy. It is a privilege to commend VWSA on the launch of its new Polo and its investment of R6,1 billion. Therefore, this investment is particularly relevant to ensure expansion, socio-economic impact and the inclusion of Black Industrialists."



"We also believe in the long term future of South Africa and Africa, for this reason the Volkswagen Group has created its fourth international region; the Sub Saharan Africa Region with VWSA being fully responsible for the region which will have substantial benefits for our company in South Africa.




 I believe that there are truly unique opportunities for us as an industry that we need to grasp, specifically here. As the automotive industry goes through radical change with electrification, autonomous driving, digitalisation etc. we must be ready to grasp these opportunities in Sub Saharan Africa". added Mr Schaefer



The Volkswagen Group retained its number one position in the passenger market for the 7th consecutive year in 2017, achieving a 21.8% market share. One in every 5 cars bought by South Africans last year is either a Volkswagen or an Audi. The Volkswagen brand in the run-out year, of its volume models, the Polo and Polo Vivo achieved a share of 18.9% meaning that the Volkswagen Brand was the passenger market leader, even without its sister brand Audi.





Photo caption  : Chairman and Managing Director of Volkswagen Group South Africa, Mr. Thomas Schaefer; Deputy Minister of Trade and Industry, the Hon. Bulelani Magwanishe; Premier of the Eastern Cape, the Hon. Phumulo Masualle;MEC for Finance, the Hon. Sakhumzi Somyo






The Polo Vivo and Polo have also been ranked the best selling cars in South Africa since launch in 2010.  That is for 7 consecutive years. They are being replaced by the new Polo launched at the event and the new Polo Vivo which will be launched next month.



"No doubt these will fare even better in the market in 2018 which we see increasing slightly too some 375 000 passenger cars from the 368 000 in 2017", commented Thomas Schaefer.



 
Matt Gennrich - photos quickpic.co.za

Permanent-URL: http://www.automobilsport.com/volkswagen-group-south-africa-major-investment-vw-polo---171976.html

25.01.2018 / MaP

Weitere Beiträge

IMF Global Growth Outlook
22.01.2018
The IMF is predicting an uptick in global growth in coming years, in part due to the impact of US tax cuts spurring investment and spending, the organization announced Monday.Global GDP growth will rise to 3.9% in 2018 and stay at that level in 2019 according to the figures released in the latest update to the World Economic Outlook report.“Well 2 weiter >>
Toyota announces new investment in its French car plant
22.01.2018
•    Toyota Motor Manufacturing France (TMMF) in Valenciennes to be upgraded to enable future production based on Toyota New Global Architecture (TNGA).•     Investment of mor weiter >>
Global sales results in 2017 - New record for Groupe Renault
15.01.2018
.... with 3.76 million vehicles sold, a rise of 8,5 %•    3.76 million vehicles sold, a rise of 8.5% in a market that grew 2.3%.•    A record year f weiter >>
Volkswagen brand sets delivery record in 2017
15.01.2018
    6.23 million vehicles handed over to customers worldwide    Deliveries up 4.2 percent on previous year    Most successful December in history of Volkswagen brand    Tiguan family with record deliveries weiter >>
Automobili Lamborghini achieves another record year
15.01.2018
3,815 cars delivered to customers in 2017 •    Lamborghini increases worldwide sales by 10% from 3,457 to 3,815 deliveries•    Global sales grow for seventh consecutive year• & weiter >>
Audi closes 2017 with new record-breaking sales
12.01.2018
1,878,100 automobiles sold:Following a difficult start, successful year-end closing with sales up 0.6 percent        Sales chief Bram Schot: “Demonstrated strength and brand attraction”     weiter >>
Porsche again sets new records for deliveries
11.01.2018
Four per cent more vehicles delivered worldwide in 2017The upward trend continued in 2017, as Porsche AG has delivered around 246,000 vehicles to customers worldwide in the last year. With this figure, the Stuttgart-based sports car manufacturer e weiter >>
BMW Group and Codelco agree on cooperation to establish the Responsible Copper Initiative.
11.01.2018
• Transparency in the copper supply chain will increase through the cooperation with Codelco • Sustainability from copper mining to installation in the automobile will be ensured • Together with many stakeholders, the Responsible Copper Initiative will set new standards in the copper supply chain weiter >>
SEAT sales rocket in 2017
11.01.2018
•    Brand deliveries total 468,400 vehicles, 14.6% more than in 2016 and the best result since 2001•    From 2012 to 2017, sales went up by 45.9%•    SEAT is one of the fastest growing brands weiter >>
2017 Toyota Motor Europe (TME) sales reach the 1 million mark with over 40% Hybrid EV sales
10.01.2018
    Toyota Motor Europe(1) sold 1,001,700 vehicles in 2017:      +8% versus last year, outperforming the market        Reaching 4.8% market share    weiter >>
McLaren Key corporate highlights 2017
05.01.2018
February – intention to build the new McLaren Composites Technology Centre in YorkshireMcLaren Automotive announced that it will in-source future production of carbon fibre Monocell and Monocage weiter >>
McLaren Automotive achieves another year of record sales in 2017
05.01.2018
McLaren Automotive, the British creator of luxury sportscars and supercars, has recorded another record year of growth, selling a total of 3,340 cars in 2017.Around two-thirds of sales are attributed to the Spo weiter >>
BMW Group sales increase 3.7 percent in December
04.01.2018
        BMW brand sales increase 4.3 percent.        MINI brand sales decrease 1.0 percent.    BMW Group Electrified Vehicles Sales total 21,208 in 2017. weiter >>
American Honda Sets 3rd Straight Annual Sales Record
03.01.2018
.....with Best-Ever December for Trucks    American Honda breaks all-time annual record for total Honda and Acura vehicle sales with 1,641,429 units in 2017, a gain of 0.2%    New light truck annual sales mark weiter >>
Porsche opens its 100th sales site in China
29.12.2017
Sports car manufacturer with a new offering for customersInvestments in the Middle Kingdom: Porsche has opened its 100th sales site in China. The new “Porsche Studio” in the huge metropolis of Guangzhou is an innovative sales concept similar to weiter >>
Daimler: Significant increase of Group Net Income as a result of the tax reform in the U.S.
23.12.2017
The law signed by the President of the USA for a comprehensive tax reform (“Tax Cuts and Jobs Act”), includes the reduction of the nationwide federal corporate income tax rate from 35% to 21%, starting January 01, 2018.   weiter >>
Daimler has acquired a majority stake in Chauffeur Privé
21.12.2017
... one of the leading private hire vehicle services in France    Another step in international expansion for Daimler Mobility Services    Chauffeur Privé has more than 1.5 million customers and 18,000 drivers weiter >>
BMW Group meets pledge to deliver 100,000 electrified vehicles in 2017
18.12.2017
The BMW Group has delivered more than 100,000 electrified vehicles to customers worldwide in 2017, as promised at the beginning of the year. This underlines the company’s leadership role when it comes to electro-mobility. An eye-cat weiter >>
Volkswagen Group deliveries grow 11.1 percent in November 2017
16.12.2017
    995,900 vehicles handed over to customers in November    Fred Kappler, Head of Group Sales: "Thanks to a successful second half of the year we are heading for a very good delivery result for the full year 2017." weiter >>
Groupe Renault, Brilliance form joint venture to manufacture LCVs in China
15.12.2017
...in three segments with three brandsGroupe Renault and Brilliance China Automotive Holdings Limited (Brilliance) have confirmed signing a contract for the formation of a joint venture to manufacture and sell light commercial vehicles ( weiter >>
BMW Group announces construction of new proving ground in the Czech Republic
15.12.2017
Company’s first development location in Eastern Europe-  Testing of ground-breaking technologies, such as electrification, digitalisation and automated driving - Investment in three-digit-million € range - weiter >>
Groupe Renault acquires a 40% share in the Challenges media group
13.12.2017
 Groupe Renault and the Challenges Group have combined efforts to develop editorial services for connected, autonomous cars and to respond to new opportunities for innovative ways of distributing content. Groupe Renault will acquire 40% of the ca weiter >>
Start of pay negotiations at Volkswagen
13.12.2017
    Chief negotiator Rosik: "We need to establish competitiveness – a reasonable pay settlement is essential."The negotiating committees of the company and the IG Metall trade union me weiter >>
Mercedes-Benz passes mark of two million vehicles sold already in November
06.12.2017
    Mercedes-Benz sold 195,698 vehicles in November – more than ever before in the eleventh month of the year (+7.2%).    Thanks to double-digit growth (+10.7%), more vehicles were delivered to customers in th weiter >>
Sales record for Honda in November
01.12.2017
New Sales Records Set as Honda and Acura Make Substantial Gains in November    Total American Honda sales rise 8.3% for a new November record; trucks also set record with 14.9% gain    Honda Divi weiter >>
BMW Group U.S. Reports November 2017 Sales
01.12.2017
        BMW Group sales total 32,087 vehicles in November        BMW brand sales increase 7.1 percent        MINI brand sales decrease 10.4 percent        BMW Group Electrified Vehicles Sales total 18,416 YTD weiter >>
Groupe Renault and Al-Futtaim sign agreements
20.11.2017
...to assemble and distribute renault vehicles in Pakistan•    Groupe Renault and Al-Futtaim sign definitive agreements dedicated to the exclusive assembly and distribution of Renault vehicles in Pakista weiter >>
Volkswagen continues its upward trend
10.11.2017
    550,900 vehicles delivered worldwide last month    Most successful October of all time:    7.7 percent increase compared with October 2016#    Deliveries so far this year 3.2 perc weiter >>
SEAT sales rise by 23.3% in October
10.11.2017
•    The Spanish carmaker delivers 40,200 vehicles in October•    Germany (+30.5%) and Spain (+24.9%) spearhead last month’s growth•    From January to October, sales near the 400,000 unit mark (+14.4%)•    The new Arona crossover is now in dealer showrooms weiter >>

© 2001-2017 automobilsport.com full copyright automobilsport.com