German car manufacturer, Volkswagen South Africa (VWSA), reaffirmed its commitment to South Africa and the continent during the launch of its new hatchback yesterday.
“Localisation remains a key priority for VWSA, with the new models at 60% local content level, with ongoing plans to achieve higher levels,” said VWSA chairman and managing director, Thomas Schaefer.
He said that this could be seen in the company’s R6.1-million investment in its Eastern Cape plant – the majority of which was spent on capital expenditure for production facilities, manufacturing equipment and information technology upgrades.
Deputy minister of trade and industry, Bulelani Magwanishe, said government remained committed to the production of vehicles locally through the Industrial Policy Action Plan (IPAP). “As the government, our commitment to local vehicle production is supported in our IPAP with a prime focus on adding value in the manufacturing and industrial sector. Export promotion, job creation and inclusive growth remain the fundamentals of this policy,” said Magwanishe.
Volkswagen also announced its plans to make the sub-Saharan Africa region its fourth international region, with VWSA at the helm.
