Volkswagen Group Africa reaffirmed its commitment to the region and its residents on Tuesday, announcing that it would invest R4bn into its Kariega plant.
The announcement was made by VW Group Africa managing director Martina Biene at an investment announcement event.
She said after more than seven decades of producing predominately Beetles, the Citi Golf and Polo, the plant would start manufacturing a compact SUV from 2027.
The announcement follows the group changing its name from Volkswagen Group SA earlier in 2024, emphasising its intent to expand its operations on the continent, making Kariega the hub of the multibillion-dollar company’s fifth continental region.
The Kariega plant will also be the sole manufacturer of the Polo in the world from July.
Biene said the latest investment signified their commitment to stimulating the African economy.
“SA is our home and Volkswagen belongs to SA. We are committed to SA and its people,” she said.
Tuesday’s event was attended by a host of dignitaries, including trade and industry minister Ebrahim Patel, premier Oscar Mabuyane, finance MEC Mlungisi Mvoko and Bay mayor Gary van Niekerk.
“We welcome this latest investment by Volkswagen,” Patel said.
“And with all the investments announced here in the Eastern Cape, the province is taking its rightful place as the automotive hub of the country.”
HeraldLIVE
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