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News Article - Automotive
VW tipped to get huge Golf 5 contract
Posted on: Friday, 25 June 2004. Article source: The Herald
Volkswagen South Africa’s leading role as a major vehicle exporter from Africa looks set to be strengthened with growing speculation that the Uitenhage-based German firm is front runner to be awarded a multi-billion rand contract for the Golf range.
The Golf 5 range is due to be launched locally next month, and VWSA is believed likely to be given responsibility for continued production of the range for British and other right-hand-drive markets.
An announcement is expected later this month regarding a major export contract for VWSA. Industry speculation is it will concern an extension of the Golf export programme to the Uitenhage auto producer by its German parent, Volkswagen AG.
This would lift VWSA to being No 1 vehicle exporter from Africa – a position gained after the manufacturer was awarded the initial Golf 4 contract five years ago.
The new contract would also be consistent with the massive infrastructure development and enhancement investments made to the VWSA plant recently.
According to Bill Stephens, VWSA’s communication manager, the company spent R700-million in capital expenditure at its Uitenhage plant last year. A further R600-million was being spent this year.
Stephens told delegates to the auto conference that VWSA had maintained its successful export record over the years, and added that this year, the company would export more than 30 000 Golfs and Polos to the Asia Pacific region.
This would be in addition to the recently announced TDI engine export programme which will generate over R12-billion in revenue over the next six years.
It was announced in March that VWSA had been chosen as the exclusive producer of the well-known 2,5F five-cylinder diesel engine for use in the new LT series panel being manufactured in Hanover, Germany.
The Golf 5 range is due to be launched locally next month, and VWSA is believed likely to be given responsibility for continued production of the range for British and other right-hand-drive markets.
An announcement is expected later this month regarding a major export contract for VWSA. Industry speculation is it will concern an extension of the Golf export programme to the Uitenhage auto producer by its German parent, Volkswagen AG.
This would lift VWSA to being No 1 vehicle exporter from Africa – a position gained after the manufacturer was awarded the initial Golf 4 contract five years ago.
The new contract would also be consistent with the massive infrastructure development and enhancement investments made to the VWSA plant recently.
According to Bill Stephens, VWSA’s communication manager, the company spent R700-million in capital expenditure at its Uitenhage plant last year. A further R600-million was being spent this year.
Stephens told delegates to the auto conference that VWSA had maintained its successful export record over the years, and added that this year, the company would export more than 30 000 Golfs and Polos to the Asia Pacific region.
This would be in addition to the recently announced TDI engine export programme which will generate over R12-billion in revenue over the next six years.
It was announced in March that VWSA had been chosen as the exclusive producer of the well-known 2,5F five-cylinder diesel engine for use in the new LT series panel being manufactured in Hanover, Germany.
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