Volvo SA plans export programme

Volvo Car SA is to increase the number of S40 and V40 models it assembles in Pretoria and intends to export units to Australia, New Zealand and Italy.

Volvo Car SA is to increase the number of S40 and V40 models it assembles in Pretoria and intends to export units to Australia, New Zealand and Italy.

If the project gets the go-ahead from Volvo Car SA’s parent company, Ford, the Swedish manufacturer will join BMW, Volkswagen, DaimlerChrysler and Toyota on the list of manufacturers that export fully built-up units to overseas markets.

According to , Volvo Car SA currently imports knocked-down kits from Holland and assembles S40 and V40 models in Pretoria for the domestic market.

Volvo Car SA managing director Deesch Papke said the company would export the next-generation of these models in 2004 if the export programme is approved.

However, Volvo’s export volumes would not be in the league of those of, for instance, BMW or DaimlerChrysler, Papke added.

Papke said that “good progress” had been made when he visited Sweden earlier this month to discuss a range of issues, including the export programme, with parent company Volvo.

Volvo hopes to expand its business by making use of the advantages gained through South Africa’s motor industry development programme, which is under review.

About 1 600 Volvos were assembled in South Africa last year and the Pretoria plant is believed to have sufficient capacity to increase output. The production facility is shared with Ford Motor Company SA.