In reaffirming its commitment to growing its footprint in SA and around the globe, Volkswagen Group Africa (VWGA) will halt production at its Kariega plant for a month in 2025 so it can work on future plans.
Though the situation has seen the plant projecting about 10,000 fewer units for 2025 compared with the record-breaking 167,084 vehicles rolling off the line in 2024, it is aimed at ultimately expanding the group’s presence on the continent with the introduction of a new and locally-produced A0 segment SUV.
VWGA is also venturing into the two-wheel landscape, having officially taken over the local retail operations of the Ducati brand in SA.
The announcements, in addition to several others, were made at the second Volkswagen Indaba on Wednesday, which expanded on the group’s plans for the R4bn investment revealed at the inaugural event.
The planned shutdown of the plant is scheduled to start in mid-April and will see refurbishments, upgrades and the installation of at least 100 new machines to accommodate the production of the entry-level sports utility vehicle.
Aside from the annual shutdown period for the factory during December, it is the first time in recent memory that the plant will be shut down.
VWGA chair and managing director Martina Biene said the group had positive projections for 2025 with pivotal projects already under way.
“The South Corridor [railway network connecting Gqeberha to Gauteng] is very important to us and I’m happy to say there has been positive movement by Transnet to get that done,” Biene said
“As well as the Kariega to Port of Port Elizabeth corridor for exports.”
The Kariega plant, which has been exporting vehicles since 1992 and manufacturing Polos since 1996, exported 131,485 units in 2024, improving on the previous export record of 108,422 vehicles in 2019.
Polos accounted for 88% of exported vehicles through the Port of Port Elizabeth in 2024.
Biene said in addition to the A0 Entry SUV project, which would see about R1.16bn being invested locally (including the growth of local suppliers), the plant intended to introduce an additional 2.1 Megawatt Solar PV installation, build a local primary school and embark on other sustainability projects.
She said it was a very special year for the company, taking into account the Polo Vivo’s 15th anniversary of local production and the 50th year of the Polo nameplate.
“What a privilege for Plant Kariega to be a part of the history of this fantastic car.
“We love the Polo as much as our customers do — if not more — and as the Home of Polo we will proudly continue building and sending this vehicle to the world,” she said.
Biene’s positive outlook for new vehicle sales and the year ahead was echoed by Naamsa chief economist Dr Paulina Mamogobo, who said the recent repo rate cut and their projected overall GDP growth forecast of 1.6% for 2025 were among the positive indicators.
However, this predicted growth was strongly dependent on energy stability, global commodity prices, infrastructure investment, the government of national unity as well as global economic conditions.
VWGA also announced at the event the fourth addition, Ducati SA, to its brand portfolio, which includes Volkswagen Passenger Cars, Audi, and Volkswagen Commercial Vehicles.
The decision, which came into effect on January 1, aimed at diversifying the brand’s portfolio and was met with resounding applause by stakeholders at the event.
It will see VWGA take over the management of retail operations and the importing of Ducati motorcycles, parts and accessories for the South African market.
VWGA head of sales and marketing Simphiwe Nghona said Ducati and VW were a good fit and were aligned in both the standard of product quality and the prioritisation of customer service.
In addition to two new motorcycles from the brand arriving in SA, the group will bring a host of new offerings to the market, some of which were revealed to the media on Wednesday, including a limited edition (1,500 units) 15th anniversary Polo Vivo, entry level T-Cross, Golf 8 1.4TSI and new Tayron.
The day featured various other speakers including members of the VW Motorsport Division, who reaffirmed their commitment to the growth of motorsport in SA with the continuation of the Rookie Cup, which kicks off at the Aldo Scribante Raceway at the weekend, the Polo Cup and the Supa Cup series.
The event was rounded off with a tour through the rigorous quality assurance process to which the vehicles produced at the plant are subjected.
The public will also be afforded a chance to contribute to the naming of the new vehicle being produced at the plant, with “four African names” being put out for public vote soon.
The Herald
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