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Eastern Cape SMME Summit 16 & 17 November 2011

Eastern Cape SMME Summit 16 & 17 November 2011

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Eastern Cape Community TV (ECCTV) Provincial Initiative

Eastern Cape Community TV (ECCTV) Provincial Initiative

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News Article - Automotive

Export coup for VWSA with 6,000 motor car order


Posted on: Monday, 23 March 2009. Article source: Engineering News, 16 March 2009

VWSA says that over 40 per cent of its total planned production will be exported.

 

Volkswagen of South Africa has celebrated the export of its 375 000th vehicle with the news of an increased export order of approximately 6 000 Polo's destined for Europe.

 

Volkswagen of SA Managing Director David Powels described the extended Polo export order as a "mini windfall". "Our factory was set to shut down completely during the weeks before and after the Easter weekend. These plans have now been cancelled and we will run full production due to this increase in export demand," he explained.

 

The increased export order is a direct consequence of the German Auto Industry Financial Support Package, which includes a 2,500 euro payment to any driver who buys a new, low-emission passenger car and scraps an existing car that is over nine years old. "The short-term demand created by the support package has resulted in Volkswagen of SA's receipt of the order for incremental export Polo's," continued Mr Powels.

 

"In view of the current uncertain business climate, we welcome this new development," Mr Powels added.

 

He said that over 40 per cent of Volkswagen of SA's total planned production volume in 2009 would be exported. "However, the situation in the global and domestic markets remains extremely volatile and depressed," Mr Powels cautioned, "As a result, our total overall production for 2009 is approximately 30 per cent down on 2008."

 

Volkswagen of SA's initial export of vehicles occurred in the early 90s with the clinching of an export deal for 12 500 left-hand drive Jettas, destined for China. The Company then proceeded to win orders for third generation Golf GTI's to the United Kingdom, a significant order for fourth generation Golfs to Europe, and, in 2004, started exporting Polos and new Golfs to the Asia Pacific region.

 

Following on its Jetta export heritage, the Company secured the order to export the latest Jetta model in May last year to countries including Australia, Japan, and Great Britain.


 
Article Tags:  VWSA  |  Volkswagen South Africa  |  German Auto Industry Financial Support Package
 
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