Jan 30, 2009
Volkswagen's SA unit to layoff 400 people, close plants in Feb, AprilBack
Volkswagen|South Africa|Easter|Vehicle Manufacturer|Eastern Cape|Bill Stephens|David Powels|Jochem Heizmann|Eastern Cape|Golf|Polo|Production Technology
© Reuse this
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".
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
Other Automotive News
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...