VOLKSWAGEN SOUTH Africa will be increasing its investment in plant infrastructure, product upgrades and improved facilities at its Uitenhage plant to R2,1 billion over the next six years. Volkswagen South Africa Managing Director Hans-Christian Maergner said that the self-funded investment was a vote of confidence in this country and would enable the company to offer further exciting products in the years ahead. “It is too early to release what these products may be but our ability to reach our export targets and budgeted profits has enabled our shareholders in Germany to support our future planning strategy,” said Maergner. “By doing so it has enabled us to secure jobs at our Uitenhage facility and give an additional boost to the country's economy through our value adding exports and foreign exchange earnings. “In 2002, we were once again in a position to export 30 000 Golf 4 units – in fact in September we attained an overall milestone of 125 000 Golf 4's exported – to Europe and the United Kingdom. “We expect that we will continue - or even slightly increase - our number of fully built up exports in the coming months. Despite the current slump in global demand, we will be expanding the countries that we export to and will commence delivering new Polo's in addition to the Golf's we currently export. “For competitive reasons we will not specify which additional countries we will be exporting to at this stage. “Furthermore, we are working aggressively in increasing our component exports to the Volkswagen Group from the R1,6 billion worth of catalytic converters, engines, alloy wheels, drive shafts, rubber-metal parts, amongst others, that were exported this year." Maergner said that the company - recently named as one of "The Most Promising Companies in South Africa" and "Best 49 Companies to Work For" - had been able to retain its position as number one in the passenger car market in 2002. “Despite a decline in the local market and increased competitor activity, Volkswagen South Africa managed an overall passenger market share of more than 22 - or one in every five cars sold in South Africa being either an Audi or a Volkswagen - over the past year. Next year will be just as tough as we aim to continue our No 1 position in a passenger market place which will not only be increasingly competitive but will also be experiencing a further decline in volume.” Maergner said there were also a number of challenges facing Volkswagen South Africa next year in terms of ongoing business improvements and people issues. “Our goal for next year is to further improve the quality of our vehicles and our quality ranking within the VW Group - as well as to aggressively increase local content in our vehicles - particularly the new Polo model - and component exports. “We also remain committed to building a skilled, motivated and empowered workforce. Training will be an ongoing priority for the company as we raise instruction levels for the increasingly sophisticated technology that will be in the next generation of Volkswagen cars. "In addition we are picking up the tempo in terms of achieving employment equity targets, especially amongst the upper echelons of the company, having already made good progress at technical, associated professional, clerical and operator levels. “Inside our plant we have also successfully rolled out an HIV/AIDS programme in partnership agreement with GTZ, a Germany government agency, to tackle this major threat to our people and our business.” * Volkswagen South Africa, a wholly-owned subsidiary of Volkswagen AG of Germany, is based in Uitenhage where it assembles Volkswagen Citi Golf & Caddy, Polo & Polo Classic and Golf 4 & Jetta 4 vehicles. It also imports a large range of Volkswagen and Audi vehicles. In 2002 it was one of the largest car manufacturers on the African continent - building 77 000 vehicles for the South African and overseas markets - including 30 000 Golf 4s for export to Europe and the United Kingdom. More than 5 100 people are employed at the facility that includes a Press Shop and Engine Manufacturing section. The company also exported components to the value of R1,6 billion this year. It has been accredited with the ISO 9001, VDA 6.1 and ISO 14000 quality and environmental management systems.