VW secures two new export contracts

VOLKSWAGEN SOUTH Africa has announced two new export contracts for the supply of alloy wheels and driveshafts to Audi AG in Europe.
The vehicle lifetime contracts, valued at R95m, take to over R4,2 billion the value of exports announced by the Uitenhage-based manufacturer this year - including catalytic converter orders for Europe and China and rubber-metal components for Germany, the PE Regional Chamber of Commerce and Industry reports.
Volkswagen purchasing head Udo Janke said the R75 million contract for driveshafts would be manufactured by Univel Transmissions of Port Elizabeth, and the
R20 million programme for alloy wheels by Tiger Wheels, of Babelegi.
"Volkswagen South Africa is continuously looking for opportunities to offset the costs of bringing imported vehicles - like 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.
"These contracts are quite different in that the driveshafts have the potential to grow beyond the 35 000 units we are supplying each year to Audi for specific models. The challenges for Univel Transmissions and ourselves is that of getting the necessary transfer of technology and meeting the tight tolerances that the manufacture of driveshafts requires especially as the current project is for new level Audi A6 drive shafts."