Jan 30, 2009
Volkswagen's SA unit to layoff 400 people, close plants in Feb, AprilBack
Africa|Volkswagen|Africa|South Africa|Easter|Manufacturing|Products|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 Transport & Logistics News
Updated 6 hours ago The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
Updated 6 hours ago More than a third (35%) of current car owners who are considering purchasing a new car in the near future, say they will possibly purchase a different car brand to the one they have, this according to a study by Ipsos. A third of car owners are undecided on the matter.
Updated 6 hours ago As vehicles become increasingly technologically advanced, the future of the automotive industry is shifting towards the ‘connected car’ that can communicate with external sources, such as the vehicle manufacturer, says mobile network service provider Vodacom...