http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.75Change: 0.07
R/$ = 10.90Change: -0.05
Au 1204.02 $/ozChange: -20.16
Pt 1244.50 $/ozChange: -25.70
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Mar 11, 2010

VWSA launches Polo Vivo as CitiGolf successor

Back
Africa|Renault|Toyota|Volkswagen|VWSA|Africa|South Africa|VWSA's Uitenhage Plant|Local Vehicle Manufacturer|Logistics|Products|David Powels|Stuart Norman|Polo Vivo|Toyota Yaris
Africa||Africa|||Logistics|Products||
africa-company|renault|toyota|volkswagen|vwsa|africa|south-africa|vwsas-uitenhage-plant|local-vehicle-manufacturer|logistics|products|david-powels|stuart-norman|polo-vivo|toyota-yaris
© Reuse this



Local vehicle manufacturer Volkswagen of South Africa (VWSA) this week re-entered the affordable passenger vehicle segment with the introduction of the new Polo Vivo, the company's replacement for the 25-year-old CitiGolf, which was discontinued last year.

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.

It has a 70%-plus local content by value, excluding the engine and gearbox.

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 (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
Small Business Deputy Minister Elizabeth Thabethe
Updated 7 minutes ago South Africans needed to become more entrepreneurial and create their own jobs, instead of expecting government to create jobs or rely on private-sector employment. “We need to become masters of our own destinies,” Small Business Development Deputy Minister Elizabeth...
Updated 8 minutes ago Plans to increase gross domestic expenditure on research and development (GERD) to 1.5% of gross domestic product by 2019 are yet to be formally adopted, despite the target being incorporated in the draft strategic plan of the Department of Science and Technology...
Updated 18 minutes ago Statistics South Africa (Stats SA) would, in future, focus more strongly on the trends of long-term unemployment in its quarterly labour force surveys (QLFSs), statistician-general Pali Lehola said on Thursday. Releasing the QLFS for the three months ended September...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
MORNÉ DU PLESSIS Increased urgency and burgeoning awareness of the importance of these issues are beginning to change political risks and, thus, State responses to environmental concerns
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...
 
 
The Democratic Alliance’s (DA’s) survey of the impact the tolling of some of Gauteng’s freeways has had on business since the start of this year has revealed a story of retrenchments and lost customers. The DA earlier this month called on businesses to submit...
Article contains comments
The backlog on South Africa’s road network has reached R197-billion, up from R149-billion in 2010, says South African National Roads Agency Limited (Sanral) CEO Nazir Alli. This backlog included the strengthening and regravelling of roads, and excluded periodic...
CAPACITY TRUCK RANGE The truck models were designed for enhanced performance, increased safety and minimal maintenance requirements
Bulk materials handling equipment distributor BLT South Africa (BLT SA) states that its range of Capacity trucks has been designed for enhanced performance, increased safety, and requires minimal maintenance. The company adds that the Capacity trucks are 4x2 modes...
Article contains comments
More
 
 
 
 
 
 
 
 
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