Volkswagen South Africa recently announced it is to export between 30 000 and 35 000 units of the right hand drive Golf 5 model to Asia and in particular, Japan. This will in be in addition to supplying the local market.

The contract which it landed from its German parent will mean an additional investment of R750 million in order to gear up the factory for this order.

Already the Golf 5 production line is being installed at the manufacturer’s plant in Uitenhage with the imminent phase out of its predecessor.

It is expected that the commercial production of the vehicle will start this year. The group may also consider making the Jetta in Uitenhage.

This announcement confirms the world’s largest automotive multinationals’ confidence in SA as a profitable production base despite the strength of the rand. The Motor Industry Development Programme, which rewards car exports based on local content, has also played a pivotal role in bolstering the industry.

This development comes on the back of similar announcements due to be made by Fiat and DaimlerChrysler and underlines the important role which South Africa plays in the international automotive market. It is further underpinned by Nissan SA’s export programme and General Motors’ takeover of Delta SA.