VW volumes grow 130% in a decade

R2-bn to be invested in facilities over next three years Aerial view of the Uitenhage Suppliers’ Park, with VW’s new vehicle car park in the top left corner. ED RICHARDSON PRODUCTION OUT of Volkswagen’s Uitenhage plant has grown by 46% since the year 2000, according to managing director Andreas Tostmann. “If one looks back a little further to 1994 when South Africa became a true democracy, production volumes have grown by a massive 130% in this period,” he says. VWSA has consistently exceeded its 20% share of the passenger car market over the past five years in a market that has become more competitive year on year. The company is on track to produce 111 000 vehicles in the Uitenhage plant this year. “This will exceed last year’s record output by 23 000 units – an outstanding achievement,” says Tostmann. Of the 111 000 vehicles planned in production this year, 40 000 will be exported to the Asia Pacific region. “There is no doubt that Volkswagen of South Africa has fully capitalised on the substantial growth in the domestic market and the opportunity offered by the Motor Industry Development Programme to grow the export business. In addition to vehicles, we will export close to R3- billion worth of engines and components in 2005,” he says. In order to win this share of the market, VW has invested over R2-billion in the past five years in plant, facilities, machinery, people and new model introductions. “We are committed to invest a further R2-billion in the next three years,” he says. VW’s latest major investment is a R750-million paint shop, which is scheduled to become fully operational early in 2007. “The new paint shop will ensure that we can accommodate the production growth potential facing us over the next 15 years. Between now and 2010 we anticipate the domestically produced vehicles in South Africa for both export and local consumption to exceed 800 000 units. This will be growth of over 70% on 2004,” says Tostmann.