A major car manufacturer in South Africa – Volkswagen SA – is adding an SUV model to its production line in the Eastern Cape.

Volkswagen SA has announced it is spending ZAR4 billion to upgrade its car manufacturing facility in Kariega to prepare for the production of a third VW model in South Africa in 2027.

A big portion of the investment, ZAR850 million, will be spent on automation in the body shop while ZAR400 million will be invested in new equipment for the press shop, reports BusinessTech.

The SUV will be manufactured on the same production line as the Polo and Polo Vivo, and the new investment will also cover training for employees.

The plant upgrade is expected to get under way in 2024.

Martina Biene, chairperson and MD of Volkswagen Group Africa, says the investment would future-proof jobs at the South African plant.

While the plant will continue manufacturing internal combustion engine cars for the foreseeable future, the car manufacturer will be launching its ID4 electric test fleet in South Africa and Rwanda this year.

23 April 2024
Image: Volkswagen