Saturday, 29 August 2015

Volkswagen to invest $340m in South Africa

German multinational automotive manufacturing
company, Volkswagen, is investing no less than $340m
(4.5bn rand) in South Africa for new products and
The automaker said it will spend about 3bn rand on
production facilities at Uitenhage, near Port Elizabeth in
the Eastern Cape province, and 1.5bn rand on
improving the supply chain by 2017, the company said
in an emailed statement during the week. VW builds
the Polo subcompact at its Uitenhage plant.
“Exports will again play a key role in our strategy going
forward,” Thomas Schaefer, managing director of
Volkswagen Group South Africa, said in the statement.
Autonews reports that car manufacturers in South
Africa, which also include Toyota Motor Corporation,
BMW Group and Mercedes-Benz, are expected to
export 18 per cent more vehicles this year as
companies take advantage of a weaker rand, the
National Association of Automobile Manufacturers of
South Africa said this month.
The report added that sales in the domestic market will
probably fall 2.8 per cent in 2015 as consumers battle
with rising fuel costs and interest rates.

Source: the Punch


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