Volkswagen AG chairman Martin Winterkorn has opened a new R230 million Parts and Distribution Centre in Centurion, Gauteng, and also announced a legacy project for Uitenhage in the Eastern Cape.
Along with the new parts and distribution centre, a R500 million investment in a new press shop in the Uitenhage plant was also announced. The opening of the new facility in Centurion was also attended by Deputy President Kgalema Motlanthe and the minister of Trade and Industries Robert Davies.
“2011 marks 60 years of manufacturing Volkswagens in South Africa. To date we have manufactured 2,7 million vehicles in our plant in Uitenhage, for both the South African market and markets around the world. Throughout the past 59 years, the Volkswagen Group has remained firmly committed to developing a world class manufacturing plant in Uitenhage,” said Winterkorn.
“Over the past four years we have invested R5 billion in our South African operation. Of which R4 billion has been invested in the past 24 months. These massive investments were made in South Africa despite the global and domestic market downturn during 2008 and 2009. These investments have enabled us to install new production technologies in our Body Shop and vehicle assembly plant, our Engine Plant including a new engine block machining line, new logistics processes and a new Paint Shop using water based paint technology.”
The constant investment allows for an aggressive local content strategy with regard to new Polo and Polo Vivo, which should be 70 per cent (up from 40 per cent) by the end of 2010. Production volumes have doubled in 2010 over 2009, and exports have grown from 30 000 in 2009 to over 75 000 in 2010. One thousand new jobs have been created at Volkswagen Uitenhage, as well as an additional 600 jobs by five global suppliers in the Nelson Mandela Bay Supplier Logistics Park.
“To illustrate our confidence in the ability of Volkswagen Group South Africa, the Uitenhage-based operation is now the sole supplier of 4-door Polo’s to all right hand drive markets around the world. In addition, the South African plant is the sole manufacturer of the all new CrossPolo for global markets,” Winterkorn added.
In addition, Winterkorn announced the introduction of Bluemotion technology in the fourth quarter of 2010, available in the Golf, Tiguan and new Touareg. He also reiterated the importance of the new Amarok pick-up.
“We anticipate the new Amarok will cause a major stir in the highly competitive one ton pick-up market in South Africa. The new Amarok will be a class leader in terms of emissions and fuel efficiency.”
VW has invested a further R20 million in the development of a new Love Life Youth Centre in Uitenhage, as part of three new Volkswagen Corporate Social Responsibility Initiatives in KwaLanga township. The investment will cover construction of the centre as well as running costs for four years.
“This R20 million Love Life Youth Centre will be situated here in the Uitenhage area and will include facilities such as a computer room, clinic, counselling rooms, library, sporting and recreational facilities and a community radio station. As soon as a suitable site for the new Youth Centre is identified and agreed upon by all stakeholders, design and planning will commence,” Winterkorn announced
Also in attendance was Volkswagen Group South Africa managing director, David Powels, members of the Volkswagen of South Africa Shop Steward Council, Nelson Mandela Bay executive mayor, Zanuxolo Wayile, Love Life officials, local Ward Councillors and community representatives from Uitenhage.
A further R4,5 million goes into a new pre-schoool in KwaLanga, as well as the launch of three “Soccer Buses” that will combine sports and health education for underprivileged children in the Eastern Cape.
