http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.66Change: 0.09
R/$ = 10.99Change: -0.02
Au 1199.50 $/ozChange: 0.34
Pt 1222.50 $/ozChange: -7.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 02, 2009

End of an era as Citi Golf retires

Back
Wolfsburg|Africa|Components|Safety|Volkswagen|Africa|Germany|South Africa|Uitenhage Plant|Automotive|Creative Advertising Gurus|Entry Level Car|Media Conference|Products|Service|Stuttering|Eastern Cape|Dave Powels|Merkava Mark 1|Eastern Cape|Golf|Polo
|Africa|Components|Safety||Africa|||Automotive|Products|Service||||||
wolfsburg|africa-company|components|safety|volkswagen|africa|germany|south-africa|uitenhage-plant|automotive|creative-advertising-gurus|entry-level-car|media-conference|products|service|stuttering|eastern-cape|dave-powels|merkava-mark-1|eastern-cape-province-or-state|golf|polo
© Reuse this



There will be no more nights on the town for the Citi Golf.

The 31-year old on Monday retired her little black dress officially as Volkswagen of South Africa (VWSA) announced that it would no longer produce the entry-level hatchback at its Uitenhage plant, in the Eastern Cape.

However, more than 517 000 units later, the A1, of Golf 1 – or as it became better known, the Citi Golf – will next year be replaced with a new entry-level vehicle, said VWSA MD Dave Powels, addressing a media conference in Midrand.

But, he added, it would be “difficult to compete on a R87 000 level, so don't expect it to be down at that level – but, yes, we will launch an entry level car.

“Next year, we will be launching into the market a comprehensive range of products to compete in all major segments of the market.”

The Citi Golf's replacement will be announced in the first quarter of next year, with the local plant currently gearing up for its production, as well as that of the Polo, at a cost of R3-billion.

Ironically, the continued existence of the Golf 1 was motivated by price, as VWSA viewed the heftier price tag of the newly-launched Golf 2, or Jumbo Golf, in the 1980s as prohibitive to the company's success in the entry-level market.

Hence, the local arm of the German manufacturer designed, with the blessing of its parent company and some creative advertising gurus, the new and truly South African Citi Golf (sold at R 7 600) to run as an entry-level vehicle alongside the new, much pricier Golf range, which had since evolved into the Golf 6.

Powels noted that the demise of the Citi Golf was not brought about by any stuttering in demand.

“There is still demand, but it is no longer economically viable to produce any platform that has a production level of 20 000 to 25 000 units a year. There is no economies of scale for us or our [component] suppliers.”

The introduction of the Automotive Production and Development Programme in 2013 to replace government's current support programme, the Motor Industry Development Programme, will provide incentives to companies able to produce 50 000 units a year or more, preferably on the same platform.

In July this year, VWSA still sold more than 1 600 Citi Golf's for the month – this after 1980s Citi Golf production estimates had been placed at 300 units a month, with the product's life-cycle predicted at roughly three to five years.

Powels said secondary reasons for halting more than 30 years of Citi Golf production – the vehicle exists only in South Africa –  were also driven by customer expectations, especially in terms of safety and technology.

He said customer demands were growing increasingly sophisticated, and that the Citi Golf could no longer keep up with these demands.

“It is an old technology platform.”

Powels noted that VWSA would continue to support and service all Citi Golfs, for “as many years as it takes”.

With local content at roughly 90%, Powels said most Citi Golf component suppliers would be able to provide VWSA with components for other models, but that a “handful of suppliers” would not be able to continue doing business with the company.

However, he believed they could still provide parts to other vehicle manufacturers, and that none of them would close their doors as a result of the Citi Golf's demise.

The closing of the Citi production line had also not resulted in any job losses, added Powels.

LAST CHANCE . . .


South Africans who still wished to own a Citi Golf could buy one until the start of next year.

To celebrate the end of the Citi Golf, which far outgunned Beetle production at Uitenhage, VWSA branded the last thousand Citi Golf's which were produced as Mk1 models, or Mark 1, harking back to its introduction to the local motoring scene.

Each car is individually numbered, and will be sold at R113 500.

The Mk1 comes with a 1,6 l engine, sports seat with partial leather, a golf ball gear knob, a radio and CD player, an airbag, red stitching detail, lowered suspension, twin exhausts and tinted glass all around.

To celebrate the end of the South African icon, Citi 001 (the last one produced in August already) would travel around the country, offering the public the opportunity to provide it with some body art in the form of signatures.

Citi 003 will be auctioned on the Bid or Buy web-site, with the proceeds to go to charity.

Two of the last produced Citi Mk1 units will join other Volkswagen Classic cars that are on permanent display at the Autostadt, the Volkswagen Group Museum and Brand Expo in Wolfsburg, Germany, and at the Volkswagen AutoPavillion Brand heritage centre, in Uitenhage.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Outgoing VWSA MD David Powels
Updated 3 hours ago Volkswagen South Africa (VWSA) has named engineer and Volkswagen Group (VWAG) foreign plants production head Thomas Schäfer as its new MD, following the planned deployment of current MD David Powels as president of VW Brazil, from February next year. Schäfer had been...
Updated 5 hours ago Trade and Industry Minister Dr Rob Davies has approved the new Medium and Heavy Commercial Vehicles – Automotive Investment Scheme (MHCV-AIS) guidelines aimed at stimulating investment into the production of these vehicles in South Africa. The MHCV-AIS, which was a...
Updated 6 hours ago South Africa’s rail network fell victim to a total of 4 703 separate “security-related incidents”, which largely comprised acts of vandalism and theft, in the 2013/14 financial period – denoting a 14% jump in the number of similar occurrences in the prior year, the...
More
 
 
Latest News
Updated 46 minutes ago Increased maintenance costs, poor rolling mill yields and strike action have widened Evraz Highveld Steel’s operating loss, from R149-million in the nine months ended September 30, 2013, to R483-million for the comparative 2014 period. The company added on Monday...
Updated 47 minutes ago Energy Minister Tina Joemat-Pettersson has misled Parliament and should be suspended pending an investigation, the DA said on Monday. "Reports indicate that the minister was involved in recommending and appointing Mr Tshepo Kgadima as chairman of the board of...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
JSE-listed real estate investment trust (REIT) Rebosis Property Fund achieved a distribution growth of 8.1% to 99.45c per linked unit in the financial year ended August 31, despite volatile market conditions.
JAMES ROBERTS The MOM incubator was designed to help babies in developing nations who were dying in conflict-struck nations or who do not receive hospital care
A low-cost, inflatable incubator won this year’s international James Dyson design award, which aims to encourage and inspire the next generation of design engineers.
The World Bank released its ‘Doing Business 2015: Going Beyond Efficiency’ report last month and ranked South Africa 43 out of 189 global economies for its ease of doing business, with Singapore topping the rankings.
Air Products South Africa officially launched its R300-million Eastern Cape air- separation unit (ASU), at its new manufacturing facility in the Coega Industrial Development Zone (IDZ), earlier this month. It is the second facility that Air Products launched in South...
BMW South Africa (SA) has signed a power purchasing agreement with energy company Bio2Watt. The offtake partnership will bring renewable energy to the carmaker’s Rosslyn plant, north of Pretoria.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks