By Lehlohonolo Lehana.
President Cyril Ramaphosa commended Volkswagen Group Africa (VGSA) for its long-term investment in South Africa and its contribution to skills development, supplier development and community investment.
Ramaphosa delivered the keynote address at Volkswagen Group Africa’s 75th anniversary celebration at the Kariega plant in the Eastern Cape on Monday evening.
The celebration marks 75 years of Volkswagen in South Africa and recognises the company’s contribution to the country’s automotive industry, economy, skills development and communities.
VWGA unveiled the new Tengo at the gala dinner. The Tengo will become the third model manufactured in Kariega, alongside the Polo and Polo Vivo, backed by a R4 billion investment.
Ramaphosa described it as a vote of confidence in South African workers, in the country’s manufacturing capability and in South Africa as an investment destination.
“We are greatly encouraged by Volkswagen’s continued investment in our country. We particularly welcome the R4 billion investment associated with the introduction of the new Volkswagen Tengo.”
“It’s a vote of confidence in our workers. It’s a vote of confidence in our manufacturing capability. And it is a vote of confidence in South Africa as an investment destination,” Ramaphosa said.
The President said the investment should not be taken for granted, particularly in an intensely competitive global environment.
He said South Africa must continue demonstrating that it has the capabilities, skills and policy environment required to attract and retain major investments.
Ramaphosa said the automotive industry was undergoing profound change as manufacturers transition towards battery electric vehicles, hybrids and other new-energy technologies.
For South Africa, he said, this presented both a challenge and a significant opportunity.
“We have an established automotive manufacturing base. We have skilled workers. And we have significant reserves of many of the critical minerals required for the technologies of the future. We must build on these strengths,” he said.
Government is working to create a stable, predictable and supportive policy environment that enables automotive companies to invest, localise and grow.
The first Volkswagen Beetle rolled off the production line at the Kariega plant, then known as Uitenhage, on 31 August 1951.
The plant was initially established in 1946 as South African Motor Assemblers and Distributors (SAMAD) for the local assembly of Studebaker cars and commercial vehicles.
Over the past 75 years, the Kariega plant has produced nearly 40 different models and built more than 4.8 million vehicles, with more than three million produced for the local market.
Today, the plant is the sole manufacturer of the Volkswagen Polo worldwide, exporting the model to 38 countries, while also producing the Polo Vivo for the local market.
Volkswagen Group Africa has also expanded its footprint on the continent, with assembly facilities in Kenya, Rwanda and Ghana.
The company remains a significant contributor to South Africa’s automotive manufacturing sector and to the economy of the Nelson Mandela Bay region.
Volkswagen Group Africa employs approximately 3 600 people and supports 1 440 suppliers, while its wider operations are estimated to support approximately 50 000 indirect jobs.
Since 2010, the company has invested more than R13 billion in its South African facilities, while its Corporate Social Investment investment since 1994 has exceeded R800 million.