Volkswagen SA has announced two new vehicle-lifetime contracts, valued at R95 million, to supply alloy wheels and driveshafts to Audi in Europe. These new agreements bring the total export contracts announced by the Uitenhage-based manufacturer this year to over R4,2 billion.
Volkswagen SA has announced two new vehicle-lifetime contracts, valued at R95 million, to supply alloy wheels and driveshafts to Audi in Europe.
These new agreements bring the total export contracts announced by the Uitenhage-based manufacturer this year to over R4,2 billion.
Volkswagen purchasing head, Udo Janke, said on Tuesday that the R75-million contract for driveshafts would be handled by Univel Transmissions, of Port Elizabeth, and the R20-million programme for alloy wheels by Tiger Wheels, of Babelegi.
"Volkswagen South Africa is continually looking for opportunities to offset the costs of importing vehicles – such as the new Audi A4 that was launched in this country in June – into South Africa," said Janke.
"These components have been secured as part of the counter export trade agreement with Audi AG in Germany and give us the scope to bring in a range of vehicles for our various customers in South Africa.”
"The driveshaft contract has the potential to grow beyond the 35 000 units we are supplying each year to Audi for specific models,” he said. “It is going to be a challenge for Univel Transmissions and ourselves to achieve the necessary transfer of technology and meet the tight tolerances that the manufacture of driveshafts requires.”
Janke said an additional investment of R1,5 million had been made by Univel Transmissions for the completion of the project, which concerns driveshafts for the new A6. Univel Transmissions, a constant velocity driveshaft manufacturer, is a joint venture between Dorbyl and GKN International.
In addition, Janke said that Tiger Wheels had extensive aftermarket experience and Volkswagen South Africa were confident that this could be translated into a successful export project.
"In the case of the alloy wheels contract with Tiger Wheels, the transfer of technology from their newly-acquired company in Germany, Stahlschmidt und Maiworm, already a supplier of aluminium wheels to Audi, is expected to be of great assistance – particularly in terms of the transfer of expertise required for original equipment parts manufacture," said Janke.