German automotive giants, Volkswagen, is about to speculate a recent $210 million in its South African manufacturing plant situated on the Japanese Cape in preparation for the manufacture of a brand new model of SUV in 2027.
In line with Reuters, the German automotive maker stated the $210 million funding can be used to improve amenities in numerous areas within the plant in preparation for the addition of a 3rd mannequin to its manufacturing line from 2027.
Martina Biene, Chairperson and Managing Director of Volkswagen Group Africa, defined the corporate’s purpose and the way it aligns with the realities of the car market in Africa for the time being.
- “As most international car markets transition to electrical autos, African markets like South Africa will proceed manufacturing and promoting autos with inner combustion engines (ICEs) for the foreseeable future,” stated Martina Biene
- “This can be resulting from buyer demand for ICEs and gradual introduction of electrical autos in these markets,” Biene added.
In the meantime, European Union nations are dedicated to a goal of ending gross sales of Co2 emitting vehicles by 2035. In the US, the plan is to extend the share of absolutely electrical autos to as a lot as 35% of the car market.
The primary section of the Volkswagen plant facility, also called the Kariega Plant, will start on the finish of 2024 through the plant shutdown, Volkswagen stated.
Volkswagen Brazil group will lead the design and improvement of the brand new SUV whereas Volkswagen Group’s Africa engineering group would give attention to adapting the SUV to suit native and continental necessities corresponding to right-hand driving.
Volkswagen revealed little or no particulars in regards to the new mannequin of SUV in competition. The German automotive maker didn’t reveal the title of the brand new SUV.
Apart the deliberate new mannequin of SUV to be launched to the plant by 2027, Volkswagen manufactures Polo and Polo Vivo fashions within the South African plant.
Biene stated the brand new mannequin SUV can be bought in African nations with Volkswagen presence and, along with this new mannequin, Volkswagen may also introduce its ID.4 take a look at fleet in South Africa and Rwanda.
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What to know
- South Africa is the biggest automotive manufacturing hub on the African continent, internet hosting international manufacturers corresponding to Toyota, Isuzu, Volkswagen and Mercedes.
- Volkswagen has invested over $538 million in its Kariega plant situated on the Japanese Cape of South Africa since 2011.
- In line with Statista, Volkswagen was the second-best promoting carmaker in South Africa with over 6,316 autos bought in 2023. The German carmakers have been solely eclipsed by Toyota which bought over 12,704 items in the identical yr.
