The Volkswagen Group South Africa (VWSA) will build the new-generation Polo at its Uitenhage plant, in the Eastern Cape, confirms MD Thomas Schaefer.

Production will start at the end of next year.

The Uitenhage plant currently produces the existing Polo model, as well as the Polo Vivo. The Polo Vivo is a revised version of the previous-generation Polo, offered at a lower price point.

Building the new-generation Polo is part of a R4.5-billion investment by VWSA’s German parent company into its South African facility, announced last year.

VWSA said at the time that the investment would see the plant increase capacity from the current 120 000 vehicles a year to 160 000 vehicles a year through the increased assembly of two new models. The plant will move from a two-shift, five-day operation to a three-shift, 24-hour, five-day operation.

VWSA does not yet want to confirm if the second production model is a new Polo Vivo.

A possible third model lurks vaguely on the horizon, but may prove elusive, notes Schaefer.

Around 50% of South Africa’s new passenger car market consists of vehicles in the Polo/Polo Vivo small-car segment, with VWSA responsible for 25% of this 50%, which should “make it no surprise” that VWSA will continue to build the Polo in South Africa.

This more affordable segment of the new-car market has been performing relatively well in the current depressed economy, notes Schaefer, with the biggest decline seen in the premium market, which is down around 35% year-to-date.

Schaefer says VWSA produced around 120 000 vehicles at the Uitenhage plant last year, with production set to increase marginally to 125 000 units this year.

Production has received a boost from a 10 000-unit Polo order from Poland.

VWSA’s Uitenhage plant has been named the best Volkswagen brand plant in the global group – competing with 19 other plants –judged on key issues such as cost, quality and labour efficiency, adds Schaefer.

Weighing the possibility of wage talks within the local automotive industry turning sour later this year, he believes there to be a 30% chance of strike action.

Black Suppliers
VWSA is trading with 10 to 12 black-owned companies at the moment, says Schaefer. He would like to see this increase to 500, owing to empowerment legislation, as well as social responsibility.

However, a recent VWSA black suppliers day, held in an effort to increase this number, delivered only 45 companies.

Schaefer says he would prefer if government or the National Association of Automobile Manufacturers of South Africa compiled a register of black-owned suppliers that could potentially do business with the local automotive industry, instead of each local automaker scrambling to find suitable suppliers.