http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.05
R/$ = 12.32Change: -0.01
Au 1168.78 $/ozChange: -0.02
Pt 1083.00 $/ozChange: 1.00
 
 
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 Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 30, 2009

Volkswagen's SA unit to layoff 400 people, close plants in Feb, April

Back
Africa|Export|Africa|Manufacturing|Products|Operations
Africa|Export|Africa|Manufacturing|Products|Operations
africa-company|export|africa|manufacturing|products|operations
© Reuse this



Vehicle manufacturer Volkswagen of South Africa (VWSA) will release up to 400 employees in a process of voluntary separation, says company spokesperson Bill Stephens.

The Eastern Cape based manufacturer will also close all of its production areas in the last week of February, as well as during the weeks before and after the Easter weekend, in April.

Stephens says the continuing worldwide financial crisis is having a "dramatic impact on the demand for vehicles, with practically all global markets showing a substantial reduction in demand".

A significant portion of VWSA's production is destined for export markets.

Therefore, the global situation will have a profound effect on the company's production volumes for export markets in 2009, says Stephens.

In addition, the current forecast for domestic vehicle sales in 2009 indicates an anticipated decline of more than 10% compared with 2008 figures, this after sales already dropped 21,1% in 2008 compared with 2007.

Stephens says VWSA "wishes to stress that this short-term reduction of demand will not lead to any changes in the company's medium to long-term strategy, which includes significant investment in new products and technology, and higher levels of local content over the next two to three years".

VWSA announced in November last year that it would invest R3-billion to renew its manufacturing plant in Uitenhage.

Volkswagen global head of production Dr Jochem Heizmann said at the time that this included the introduction of new production technology in body shop and vehicle assembly operations, and a new engine manufacturing strategy to supply both domestic and export markets.

He added that VWSA would review its number of production platforms from three to two, as it dropped the Golf/Jetta platform, which the company currently exports.

It is likely the two remaining production platforms will be the Polo and the CitiGolf, and eventually its replacement, but hopefully in higher volumes than what is currently the case.

VWSA MD David Powels said that both locally produced platforms would be for the domestic market, with one or maybe both destined for export markets.

 

 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
Port of Saldanha
The Port of Saldanha would present investors with investment opportunities in excess of R13-billion over the next five years, business leadership organisation Accelerate Cape Town announced at its July Thought Leadership session. Feasibility studies are already under...
ENERGY-EFFICIENT PETROCHEMICALS Engen supplies energy-saving hydraulic fluids and synthetic lubricants to the industrial sectors and provides products for petrol and diesel engines
Responding to the energy sector’s need to reduce energy consumption, African energy multinational Engen will be exhibiting new energy-saving hydraulic fluids and synthetic lubricants, which will soon be introduced into the company’s product offering, at this year’s...
More
 
 
Latest News
An end to wage negotiations within the local government sector could be in sight as a conciliator’s proposal, setting out a number of settlement suggestions to resolve the deadlock, was expected on Monday. The Independent Municipal and Allied Trade Union (Imatu)...
Development financier Eastern Cape Development Corporation (ECDC) executive Noludwe Ncokazi on Friday said the organisation had the “huge responsibility of ensuring business continuity”, following the resignation of ECDC subsidiary Automotive Industry Development...
South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96