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German automotive giants, Volkswagen, is about to take a position a contemporary $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 response to Reuters, the German automotive maker mentioned the $210 million funding could 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 aim and the way it aligns with the realities of the car market in Africa for the time being.
- “As most world car markets transition to electrical autos, African markets like South Africa will proceed manufacturing and promoting autos with inside combustion engines (ICEs) for the foreseeable future,” mentioned Martina Biene
- “This shall be resulting from buyer demand for ICEs and sluggish 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 automobiles 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, often known as the Kariega Plant, will start on the finish of 2024 through the plant shutdown, Volkswagen mentioned.
Volkswagen Brazil workforce will lead the design and growth of the brand new SUV whereas Volkswagen Group’s Africa engineering workforce would give attention to adapting the SUV to suit native and continental necessities resembling 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 identify 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 mentioned the brand new mannequin SUV could be offered in African nations with Volkswagen presence and, along with this new mannequin, Volkswagen will even 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 most important automotive manufacturing hub on the African continent, internet hosting world manufacturers resembling 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 response to Statista, Volkswagen was the second-best promoting carmaker in South Africa with over 6,316 autos offered in 2023. The German carmakers have been solely eclipsed by Toyota which offered over 12,704 items in the identical 12 months.
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