Mar 11, 2010
VWSA launches Polo Vivo as CitiGolf successorBack
Renault|Toyota|Volkswagen|VWSA|Africa|South Africa|VWSA's Uitenhage Plant|Local Vehicle Manufacturer|David Powels|Stuart Norman|Polo Vivo|Toyota Yaris
© Reuse this
The Vivo uses the old Polo as its platform, and is again, as was the case with the CitiGolf, a South Africa-only vehicle, designed and built by VWSA.
In the 1980s, VWSA dressed up the Golf 1 and rebranded it as the CitiGolf to ensure it kept a presence in the lucrative entry-level segment of the market. However, continuing the CitiGolf much longer into the new millennium became too expensive, while competitors, especially from the East, also presented some stiff competition with a slew of new products, said VWSA sales and marketing GM Stuart Norman.
It was essential for VWSA to re-enter the market with a more affordable vehicle than the new Polo, launched in January, and which started selling at around R150 000.
Norman said 73% of VWSA's passenger vehicle sales in 2009 had been in the low-price end of the market.
Pricing for the nippy Vivo starts at R101 500. Its competitors are, among others, the Renault Sandero and Toyota Yaris.
The Vivo, built in VWSA's Uitenhage plant, comes in 1,4 l and 1,6 l derivatives.
Carbon dioxide emission levels are measured at 147 g/km for the 1,4 l, 55 kW vehicle, with the threshold to dodge government's new carbon levy set at 120 g. The tax will be implemented in September.
VWSA MD David Powels said that VWSA was able to offer the Polo Vivo so much cheaper than its 'predecessor' - which was priced at R140 000-plus as recently as last year -- owing to the fact that it now had a much higher local content, which meant a sharp cut in logistics cost, for example, while also creating economies of scale for component manufacturers.
The local content in the old Polo was 39%.
Comparisons are inevitable, but Powels was at pains to point out that the Polo Vivo and the old Polo were very different vehicles.
The Vivo boasts, for example, different headlights and taillights, as well as a surgically altered nose.
As the Polo Vivo followed the CitiGolf blueprint to some degree, VWSA would not be able to see a new model introduction of the Polo Vivo, as that would add too many costs to the price tag of the vehicle. At most, the Vivo would receive facelifts every now and then, as was the case with the CitiGolf.
Powels believed the high residual value of the old Polo would protect its resale value as the new Vivo entered the market.
Powels said it was possible to export the Polo Vivo to markets in sub-Saharan Africa as soon as the market demanded it.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
Updated 2 hours 33 minutes ago Volkswagen Financial Services, finance arm of the German auto maker, has joined forces with South African vehicle and asset finance company, WesBank, to form Volkswagen Financial Services South Africa (VFSSA). Volkswagen Financial Services owns 51% of the new finance...
Recent Research Reports
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...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
This month’s report includes details of junior miner Papillon Resources’ mining permit for its flagship Fekola gold project, in Mali; the Waterberg Coal Company’s feasibility on the development of an opencast mine, in Limpopo, to produce ten-million tonnes a...
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...