South Africa is not a logical, nor is it yet, a really viable location to produce cars without government support, warns VWSA chairman and managing director, Thomas Schaefer. Speaking at the launch of the new Polo and Polo Vivo in Port Elizabeth recently, he said that the VW group would in all likelihood not have decided to invest R6.1 billion in the South African plant had the decision been made in 2017. “In essence, one of the most important issues for us as vehicle manufacturers is a stable and attractive government automotive policy. “This is where the South African government needs to be complimented, firstly for the introduction of the MIDP, which worked and provided a stable base for the successor programme, called the APDP, which again can be called a success. “I am sure that the next phase will continue in the same vein and allow for continued automotive investment. “Basic economic fundamentals and an investor-friendly legislative framework within a reasonably stable economic environment are also essential. “Let me say that had the investment decision been due in 2017, it is unlikely that it would have been approved. “Fortunately, we are long-term planners and are pleased to see some positive developments occurring in the country and the economy which should improve business sentiment and bring investor confidence back. “We also believe in the longterm future of South Africa and Africa, and that both destinies are connected, hence the formation of the sub-Saharan region,” he said. VW SA is responsible for a newly created sub-Saharan region within the VW group globally. In addition to the Uitenhage plant there are manufacturing facilities in Nigeria, Kenya and Rwanda.
INSERT
Had the investment decision been due in 2017, it is unlikely that it would have been approved – Thomas Schaefer
