Volkswagen of South Africa (VWSA) would invest R500-million to build a new press shop at its Uitenhage plant, in the Eastern Cape, with another R60-million to follow with the construction of a new dealer training academy, in Midrand, Gauteng.

The announcement was made by Volkswagen CEO Professor Doctor Martin Winterkorn at the opening of the new VWSA R230-million parts and accessories distribution centre, in Midrand.

Winterkorn, visiting South Africa from Germany, said that the press shop would enable further local content gains on the vehicles manufactured by VWSA, and improvements to “overall competitiveness”.

He said that local content on the Polo and Polo Vivo would already increase from a historic level of 40%, to more than 70% by the end of the year.

Construction work on the press shop would start in the fourth quarter of the year, with the facility operational by mid-2012.

Construction of the training academy would start in the same time-frame.

The Uitenhage plant manufactured the new Polo – the world car of the year – for all right-hand-drive world markets, and the CrossPolo for all markets globally, as well as the Polo Vivo for the local market.

Winterkorn said that the German vehicle manufacturer aimed to be the world number one vehicle manufacturer by 2018 – a position it was already close to achieving as it tussled with Japanese power-house Toyota for pole position.

“South Africa plays an important role in these efforts,” said Winterkorn.

He added that Volkswagen had already invested R5-billion in VWSA’s operations over the last four years.

This investment would culminate in 2010 production volumes at the Uitenhage plant doubling from 2009 levels, reaching an expected 120 000 units. Winterkorn said that exports were set to reach 65 000 new Polos this year, up 150% on 2009 numbers.

“Our commitment to Volkswagen Group South Africa has never been stronger,” said Winterkorn. “We are proud of what we have achieved in South Africa . . . Next year we will celebrate our sixtieth anniversary of manufacturing cars in South Africa. We remain committed to a country full of opportunity.”

VWSA’s new Midrand parts and accessories distribution centre replaced the old facility in Roodekop, which had become too small to cater for the company’s product range, which would soon expand with the launch of its first-time entry into the one-ton pick-up market, the Amarok, in October.

The centre, with its 26 000 m² floor space, carrying R250-million in inventory, would open its doors before the end of the year.