VW signs R12bn export order
ED RICHARDSON
THE SOUTH African motor industry is succeeding in opening up new markets for both components and fully built up vehicles, says trade and industry minister Alec Erwin.
He was speaking in Uitenhage at the recent announcement of a R12billion export order for 440000 diesel engines by Volkswagen South Africa.
Exports have already started at an initial volume of 27 500 units a year, which will grow to 70 000 a year when the engine is in full production. The five-cylinder TDI engines will be shipped to the Group’s Hanover plant in Germany for use in production of the range of LT Panel Vans. Vehicles which Volkswagen of SA commenced importing late in 2003, says VW SA managing director Andreas Tostmann.
According to Tostmann, Volkswagen of SA has invested R240-million in its facilities to prepare for the engines, and there are other engines and markets in the pipeline. “The contract will be extended to include the next generation of five-cylinder engines and, possibly, a petrol engine destined for export to China,” he said.
