Volkswagen Kariega manufacturing plant upgrade, South Africa
Photo by VWSA
Name of the Project
Volkswagen Kariega manufacturing plant upgrade.
Location
Kariega, in the Eastern Cape, South Africa.
Project Owner/s
Volkswagen Group Africa.
Project Description
Volkswagen announced an investment in its Kariega manufacturing plant in April 2024.
The investment is aimed at preparing the plant to manufacture a third model from 2027. The model, which will be a sports utility vehicle, will be manufactured on the same production platform as the Polo and Polo Vivo – Volkswagen’s top-selling passenger car brands in South Africa.
The bulk of the investment will be allocated towards production facilities, manufacturing tooling, local-content tooling and quality assurance. Nearly R877-million will be spent to enhance automation in the body shop and R418-million will be used to buy new press tooling for the press shop.
Potential Job Creation
Polo and Vivo have 46% and 58% local-content levels respectively. The trend is set to continue with the new model, which aims to achieve an estimated 40% local content through a R1.2-billion investment.
Capital Expenditure
R4-billion.
Planned Start/End Date
The first phase of the plant facility upgrade will start at the end of 2024 – during the plant shutdown.
Latest Developments
None stated.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Volkswagen Group Africa head of group communications Andile Dlamini, tel +21 41 994 5042 or email andile.dlamini@vwsa.co.za.
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