Monday marked a major milestone for Volkswagen Group Africa (VWGA) as the manufacturer celebrated the 75th anniversary since the first vehicle — a Volkswagen Beetle — rolled off the production line in Kariega.
And the overarching message from Volkswagen Brand chief executive Thomas Schaefer during the company’s diamond anniversary celebration of its Kariega plant was emphatic: SA is the gateway and Kariega is the anchor.
Volkswagen Group chief executive Dr Oliver Blume was also in attendance.
Over the past 7½ decades, the German automotive manufacturer has entrenched itself in the Eastern Cape and underpinned the sector as the region’s largest employer, providing thousands of jobs, billions of rand in investments and longstanding support for community development in the region.
The 75th Anniversary Gala Dinner brought 250 guests together in the heart of the plant where the final assembly section of the factory was converted into a black-tie venue.
The event, convened under the theme “A legacy in motion: Honouring the past, celebrating today, driving tomorrow,” saw dignitaries, dealers, stakeholders, union representatives, employees and the media coming together to commemorate the company’s contribution to SA’s automotive sector and beyond.
Also present was President Cyril Ramaphosa, who delivered the keynote address, Numsa general secretary Irvin Jim, economic development, environmental affairs and tourism MEC Nonkqubela Pieters and Bay mayor Babalwa Lobishe.
Ramaphosa recognised the invaluable contribution VWGA had made since it was initially established in 1946 as South African Motor Assemblers and Distributors (SAMAD).
And he shared some of his own fond memories of the brand, including him and his girlfriend once “stealing” her father’s Beetle for a night on the town and the shock a reporter once showed after seeing him driving a VW Polo.
“Like me, many South Africans carry memories of the place of Volkswagen cars in their lives,” he said.
“This brand is so woven into our culture that we sometimes have to remind ourselves that VW is not a South African vehicle.
“As Volkswagen itself says: it is a German brand, with a South African heart.
“On the 31st of August 1951, the first Volkswagen Beetle rolled off the production line in what was then Uitenhage.
“That moment marked the beginning of what would become the largest German investment in Southern Africa.”
Ramaphosa said the factory represented a pivotal part of SA’s automotive heritage and would continue to be a major player with regard to the future of the sector.
“The automotive sector is one of the largest manufacturing industries in our country.
“It supports more than 115,000 direct manufacturing jobs and more than half a million jobs across the automotive value chain.
“The industry accounts for just over 5% of our gross domestic product and reaches 155 export destinations.
“Vehicles manufactured by our plants reach markets across Europe, the United Kingdom, the United States, Africa and many other parts of the world.
“The automotive industry is therefore vital to our efforts to grow the economy, expand exports, attract investment and create jobs.
“Volkswagen has been an integral part of this journey.”
He said the government was focused on creating a conducive environment for the auto sector’s growth.
“Volkswagen’s history in SA is a story of partnership.
“I therefore welcome the call from Volkswagen, and from the broader automotive industry, for stronger partnership between government, business and labour.”
Over the past 75 years, the Kariega plant has produced nearly 40 different models and built more than 4.8-million vehicles for both local and international markets.
The Kariega plant is at present the sole manufacturer of the Volkswagen Polo worldwide, exporting the model to 38 countries, while also manufacturing the Polo Vivo for the local market.
However, looking to the future, the VWGA group will start producing the Tengo at the plant in 2027.
The sleek vehicle was officially unveiled on Monday and reaffirmed the company’s decision to continue working with and investing in the region and its people.
The group has also established a growing footprint on the African continent, with assembly facilities in Kenya, Rwanda and Ghana.
VWGA chair and managing director Martina Biene said the company’s focus would be to ensure it was able to maintain and grow its stake in the automotive landscape.
And subsequently do the same for the workforce of about 3,600 people, as well as supporting 1,440 suppliers, with its wider operations estimated to support about 50,000 indirect jobs.
“I would have loved to be in that boardroom in Wolfsburg, to understand why exactly they decided the first Volkswagen factory outside of Germany should be in a small town at the tip of Africa,” she said.
“Whatever their reasons were, I think we can all agree it was a wise choice, and leave it at that.”
Biene said though the company had German parents, it definitely identified as South African.
“In the past 7½ decades, Volkswagen has employed tens of thousands of people, invested billions of rand in our business and our communities, built nearly five-million cars and played an active role in shaping policies at an industry level, in SA and in other African markets.”
Biene, however, said the continued growth of the company in SA would not be possible without the support of the government.
“While we celebrate many achievements today, it would be remiss of me not to highlight the severe challenges currently confronting Volkswagen and the South African automotive industry.
“Mr President, we need decisive policy action and greater responsiveness to the concerns we have consistently raised.
“These government interventions are critical to safeguarding the long-term sustainability and competitiveness of Volkswagen, the six OEMs in SA, as well as the automotive sector as a whole.
“Volkswagen remains firmly committed to SA.
“We have been part of this country’s story for 75 years, and we want to be here for the next 75 years and beyond.
“With the right policy environment and continued collaboration between government and industry, we can secure a sustainable future for our business, our employees, our communities, and SA’s automotive sector.”
Schaefer echoed Biene’s sentiments, saying the industry required an equal playing field for OEMs to continue to grow and develop.
“In Wolfsburg, we are betting on Kariega ... this is not a plant that asks for the trust, it earns it.”
In addition to its manufacturing contribution, the company has also been actively involved in developing the surrounding community, having contributed more than R800m in corporate social investment since 1994.
The most recent project was the LEAP 9 Science and Mathematics School launched on Monday in an effort to improve education prospects in KwaNobuhle and surrounding areas.
Before its refurbishment and reopening, the school had been abandoned and in poor condition for several years.
It now has pupils in grades 1, 2 and 8, with classes expected to expand gradually until the school is fully operational by 2034, following a planned multimillion-rand investment in its infrastructure and operations.
Eastern Cape premier Oscar Mabuyane also congratulated the company on achieving its 75th anniversary and thanked it for being part of the economic and social fabric of the province.
