Name of the Project
Volkswagen South Africa Group (VWSA) investment plan.
Location
Uitenhage, Eastern Cape, South Africa.
Client
VWSA.
Project Description
The project involves upgrading and expanding VWSA’s Uitenhage plant to produce two new models for the local and export markets.
Both models will use VW’s small car Modular Transverse Matrix (MQB) platform, which is used to build various models – from a Saveiro half-ton pickup to a small sports utility vehicle – and feature new technologies and driver-assistance systems.
The investment will also result in the Uitenhage operation’s moving from a predominantly right-hand-drive market to one also producing left-hand-drive vehicles in significant numbers.
The investment will result in the plant increasing capacity from the current 120 000 vehicles a year to 150 000 vehicles a year.
Jobs to be Created
VWSA’s investment at the Uitenhage plant is expected to increase by between 300 and 500 people.
Value
The investment of about R4.5-billion t to produce the new models, announced last year, has been allocated to the upgrade and refurbishment of production facilities (R3-billion), the development of local supplier capacity (R1.5-billion) and the development and training of employees (R29-million).
Duration
Production of the two new models are expected to start in 2017, as the current models reach the end of their life cycle.
Latest Developments
Volkswagen has unveiled the new, sixth-generation Polo that will be produced in South Africa, among other global production locations.
VWSA has confirmed that the new hatchback will make its debut in South Africa in early 2018.
The next-generation Polo is completely new. It is based on German carmaker’s MQB AO platform architecture and will be significantly bigger than the current model. The vehicle’s length has increased by 81 mm, its wheelbase by 94 mm and its width by 69 mm. The boot is also 25% bigger, expanding from 280 ℓ to 351 ℓ.
The previous Polo was based on Volkswagen’s PQ25 platform.
Volkswagen has confirmed that the new Polo will be available in petrol and diesel engines, and with manual and automatic transmission.
The new generation will be boosted by a number of technological improvements, including adaptive cruise control, blind spot detection, rear traffic alert and park assist, although it is not clear if they will all filter down to the South African market.
European entry-level variants will use a 6.5-inch multimedia touchscreen, which can increase in size in higher spec versions, while other options include wireless phone charging and keyless entry.
In Germany, the entry-level Polo will start at €12 975 (R195 000).
VWSA MD and chairperson Thomas Schäfer said earlier this year that the company would ramp up production of the new Polo at the Uitenhage plant, in the Eastern Cape, by the third quarter of the year.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
VWSA spokesperson Matt Gennrich, tel +27 11 911 2789, fax +27 11 911 2700 or email gennrich@vwsa.co.za.