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VW’s new plant intrigue By Max Matavire VOLKSWAGEN is set to build a multi-million-rand truck and bus assembly line close to its Uitenhage car plant next year. This dramatic news, which will be a huge boost to the local economy, emerged this week in a report from Brazil, where VW is a major bus and truck manufacturer. According to the British website www.just-auto.com, the German automotive giant is looking at building the plant during the second half of next year and it will be only the third such Volkswagen facility worldwide. The website says VW has built trucks and buses in Brazil since 1981 and last month started truck production in Mexico. But Volkswagen SA was coy about confirming the news yesterday. A VWSA spokesman said the report was “speculative”, but talks were taking place within the global group. VWSA declined to comment on the estimated value of the investment or the number of jobs to be created. In fact, the company did not want to comment on anything regarding the proposed investment. “I cannot confirm anything at this stage. The matter is under discussion, but nothing has been confirmed so far,” said VWSA communications general manager Bill Stephens. “The statement is unofficial and VWSA cannot substantiate it.” The website report, filed on Monday, is datelined Brazil, and marked “exclusive”. It says: “According to Volkswagen, the South African plant initially will produce three bus models. Right-hand drive development will be carried out by VW Brazil, which will also supply assembly kits from its Resende plant (Rio de Janeiro).” The South African-made models are expected to help VW take a 10 per cent share of the local bus market in three years. According to the website, the company also plans to make South Africa a base for exports of right-hand drive buses and trucks to African and Asian markets. VWSA already ships South African-built Golf and Polo models to markets in the Asia Pacific region. “The new assembly line will begin making buses, but Volkswagen also has plans to produce trucks in South Africa,” said the website. Volkswagen started truck and bus production in Brazil after buying Chrysler’s local truck division in 1980. In 1996, the company opened a new plant in Resende. The factory works on a “modular consortium” system, where seven suppliers build component modules and assemble the vehicles in the VW-owned plant. The factory now exports vehicles to more than 30 countries and supplies the new Mexican Puebla assembly line with knockdown kits. This year, VWSA invested about R650-million in the new Golf 5, which was launched last month. The car is being exported to East Asia, Japan and Australia.
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