Name of the Project
Volkswagen South Africa Group (VWSA) investment plan.

Location
Uitenhage, Eastern Cape, South Africa.

Client
VWSA.

Project Description
The project involves upgrading and expanding VWSA’s Uitenhage plant to produce two new models for the local and export markets.

Both models will use VW’s small car Modular Transverse Matrix (MQB) platform, which is used to build various models – from a Saveiro half-ton pickup to a small sports utility vehicle – and feature new technologies and driver-assistance systems.

The investment will also result in the Uitenhage operation’s moving from a predominantly right-hand-drive market to one also producing left-hand-drive vehicles in significant numbers.

The investment will result in the plant increasing capacity from the current 120 000 vehicles a year to 150 000 vehicles a year.

Jobs to be Created
VWSA’s investment at the Uitenhage plant is expected to increase by between 300 and 500 people.

Value
The investment of about R4.5-billion t to produce the new models,  announced last year, has been allocated to the upgrade and refurbishment of production facilities (R3-billion), the development of local supplier capacity (R1.5-billion) and the development and training of employees (R29-million).

Duration
Production of the two new models are expected to start in 2017, as the current models reach the end of their life cycle.

Latest Developments
VWSA MD and chairperson Thomas Schäfer has said that the company will ramp up production of the new Polo at the Uitenhage plant by the third quarter of the year.

Production of the first confirmation models has started.

Most of the major installations were completed over the Christmas shutdown, with the last work undertaken over the Easter period.

The Uitenhage plant will also produce a second new model, and possibly a third.

A third model remains possible, Schäfer has noted. “The platform [to be used at the plant] is good for variants, from pick-ups to sports utility vehicles.”

He has declined, however, to name the models to be assembled in addition to the new Polo.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
VWSA spokesperson Matt Gennrich, tel +27 11 911 2789, fax +27 11 911 2700 or email gennrich@vwsa.co.za.