EASTERN CAPE-BASED Volkswagen South Africa is creating opportunities for component suppliers in the Eastern Cape and the rest of South Africa. In his review of 2001, managing director Hans-Christian Maergner said “we will continue with our export order of 30 000 units next year despite the reduction in production orders currently being experienced by all manufacturers on a world-wide basis. Proof of our success as the first motor company in South Africa to fully embrace the MIDP programme has been our ability to import a whole host of VW and Audi products to complement the locally produced cars in exchange for the exports at no additional duty. As a vehicle manufacturer our plan is to achieve a globally competitive 80 per cent of our build capacity in ensuing years as we strive to safeguard present jobs and even to create new jobs in the supplier industry. This can be achieved as it is our intention to increase our component export business which is an area of great potential for us. We plan to grow our component export business - including catalytic converters, alloy wheels, rubber-metal components, drive-shafts and engines, amongst others - to R1,7 billion in 2002. We also begin our next programme of capital investment with more than R1,6-billion being set aside for the next five years – including an amount in excess of R450 million which we will be investing in plant infrastructure, product upgrades and improved facilities, from information technology systems to team areas within the plant. Our goal for next year is to further improve quality in our vehicles to the point where we are part of the top quality ranking within the VW Group - as well as to increase local content in our vehicles and component exports. We remain committed to building a skilled, motivated and empowered workforce and multi-skilling will be an ongoing priority for the company as we continue training levels of more than 1000 participants per month. Furthermore, we will be focusing on the roll out of our Black Economic Empowerment policy for our dealers and suppliers. While internally we will be picking up the tempo in terms of achieving employment equity targets in the upper echelons as we have already achieved - and in some cases exceeded - the targets at technical, clerical and operator levels. Inside our plant there will also be a new HIV/AIDS project as we have signed a partnership agreement with GTZ, a Germany government agency, to tackle this major threat to our people and our business.” In 2001 Volkswagen South Africa regained its position as number one in the passenger car market despite very little growth in the local market with a share of more than 21 per cent - or one in every five cars sold in South Africa is either an Audi or a Volkswagen. While on the export front the company recently logged up its 100 000th export Golf 4 - part of its 30 000 units per year contract to supply Golf 4’s to European markets - and which was valued at more than R9 billion in foreign exchange earned.