Volkswagen South Africa (VWSA) has landed a component export contract worth about $US40 million from its parent company in Germany, Volkswagen Group. The deal will add to VWSA’s annual exports of components and 30,000 fully built up vehicles to Europe and the Far East, writes Dave Cumming.
The contract will see the company gear up to produce 200,000 catalytic converters a year and it will also supply 25,000 wheel arches and ‘long members’ to China’s Chang Chung car assembly plant. The catalytic converters are destined for commercial vehicles assembled at VW’s main production centre for these models in Hannover, Germany.
VWSA will invest a further $US2 million to meet its new export commitments. Existing exports to the VW group include leather seating, wiring harnesses, alloy wheels and electronic control units, in addition to fully built up vehicles, mostly the current model ‘Mark 4’ Golf. VWSA, which builds locally most of the vehicles it sells in South Africa, also expects to export the completely redesigned Golf 5 in the near future.