Name of the Project
Volkswagen South Africa Group (VWSA) investment plan.

Location
Uitenhage, Eastern Cape, South Africa.

Client
VWSA.

Project Description
VWSA has upgraded and expanded its Uitenhage plant to produce two new models for the local and export markets – the new-generation Polo and Polo Vivo.

Both models will use VW’s small car Modular Transverse Matrix platform, which is used to build various models – from a Saveiro half-ton pick-up to a small SUV – and feature new technologies and driver-assistance systems.

The investment will also result in the Uitenhage operation progressing from a predominantly right-hand-drive market to one also producing left-hand-drive vehicles in significant numbers.

With this investment, the plant will increase its capacity from the current 120 000 vehicles a year to 160 000 vehicles a year. A possible third model might also be built at the plant.

Jobs to be Created
VWSA’s investment at the Uitenhage plant is expected to result in staff increasing by between 300 and 500 people.

Value
R6.1-billion.

Duration
The upgrade of VWSA’s Uitenhage plant was completed in September 2017, with the start of production of the Polo and Polo Vivo.

Latest Developments
VWSA launched its new Polo and showcased the R6.1-billion investment in its plant and new products on January 28.

The majority of the investment was on production facilities, local-content tooling, quality assurance and manufacturing equipment, as well as information technology upgrades.

Upgrades included a R564-million new press shop and 330 new robots for the body shop.

Maximum yearly plant capacity is expected to be reached with a three-shift operation of about 160 000 vehicles in 2019.

The addition of a third shift will add another 300 employees to the assembly line.

Local content of the new Polo and Polo Vivo is 60%, with ongoing plans to increase this number.

As part of the investment, Volkswagen has introduced the one-line concept, with the new Polo and Polo Vivo now built on one line. Traditionally, vehicles on different platforms are assembled on unique production lines. To build two completely different platforms on one line is challenging, complex and requires new training of employees.

The introduction of the one-line concept at Uitenhage has also introduced a new integrated logistics concept.

The strengthening of the rand has also reintroduced the possible production of a third model at the VWSA plant. VWSA MD and chairperson Thomas Schaefer is hopeful of a decision on the possible third model later this year.

Schaefer has said that VWSA is also “fighting” to bring a new engine variant to the plant.

He expects the decision to be made in the next six months.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
VWSA initially announced an investment of about R4.5-billion; however, the total investment exceeded R6.1-billion, which was partially attributed to exchange rate fluctuations and the approval of additional plant investments.

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.