VW sets up African plant network

New opportunities for the
shipment of components and
finished vehicles are being
created by the opening of new
Volkswagen assembly plants
in Africa.
In December 2016 the
company started assembling
Polo Vivos in Kenya for the
first time since 1977.
The plant will assemble
vehicles for Kenya and
the East African market
– with components
initially being supplied by
Volkswagen South Africa.
It is understood that
components are largely being
airfreighted until the volumes
justify regular container
shipments out of Port
Elizabeth.
Speaking at the opening
of the plant in December,
Kenyan president Uhuru
Kenyatta said “today is the
beginning once again of
Kenya’s industrialisation
journey.”
Volkswagen now has
three production plants in
Africa – the other two being
in South Africa and Nigeria.
Annual production of
up to 1 000 vehicles a year
is planned, with the Kenya
Vehicle Manufacturers (KVM)
plant being able to scale up to
5 000 units a year, according
to VW.
A fourth African plant is
being opened in Algeria and a
fifth in Rwanda.
At the same time Rwanda
has become the first African
country to enter into the
post-ownership “mobility”
era.VW and other motor
manufacturers in Europe in
particular are changing their
business models to focus on
providing mobility rather
than new vehicles.
In Rwanda the
programme includes the
introduction of app-based
mobility solutions such as car
sharing and ride hailing.
“For this purpose, an
environmentally compatible
local vehicle production
facility is to be established
in the capital city Kigali
to cover vehicle demand
for the integrated mobility
concept,” says VW in a media
statement.
“Rwanda is well suited
to be a pioneer of new
mobility solutions as it has
a population of young techsavvy
people and its capital
Kigali is seen as the most
connected city in Africa,”
according to VW.