Uitenhage, January 28, 2018 – Volkswagen launched its new Polo and showcased the R6.1 billion investment in its plant and new products, in the presence of Eastern Cape Phumulo Masualle, the honourable Deputy Minister Bulelani Magwanishe of the DTI, media representatives and key stakeholders.
In August 2015, VWSA Chairman and Managing Director, Thomas Schaefer announced an investment of around R4.5 billion rand in new product and facilities. The total investment exceeded R6.1 billion rand, which is partially due to exchange rate fluctuations and the approval of additional plant investments.
The majority of the investment spend was on Capital Expenditure for production facilities, local content tooling, quality assurance and manufacturing equipment as well as Information Technology upgrades.
Localisation remains a key priority for VWSA, with the new models at a 60% local content level, with on-going plans to achieve higher levels.
Volkswagen introduces the innovative One-line Concept for the first time as part of the investment; traditionally vehicles are assembled on unique production lines. It has always been possible to build derivatives of the same platform on one line, but to build two completely different platforms on one line is a technical challenge, highly complex and requires new thinking and training for the employees. The introduction of the one line concept also includes a new integrated logistics concept. Whilst there are no short term financial benefits there are synergies and efficiencies as well as people benefits that come about as the result of the one line concept.
Volkswagen is the only vehicle manufacturer which has the