Name and Location
Volkswagen South Africa Group (VWSA) investment plan, 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 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.

Value
VWSA plans to invest more than R4.5-billion in its investment plan, which will include more than R3-billion in production facilities, about R1.5-billion in local supplier capacity and a further estimated R22-million for the development and training of employees.

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
VWSA has announced that it will build the new-generation Polo at its Uitenhage plant.

Production will start at the end of next year.

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

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 might prove elusive, VWSA MD Thomas Schaefer has noted.

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.