ABN – German car manufacturer Volkswagen AG plans to invest more than 4.5 billion rand ($340 million) in new products and infrastructure for its South African business.
About 3 billion rand will go towards production facilities at Uitenhage, near Port Elizabeth in the Eastern Cape, and 1.5 billion will go towards improving the supply chain by 2017.
Thomas Schaefer, managing director of Volkswagen Group South Africa, said in a statement: “Exports will again play a key role in our strategy going forward.”
The National Association of Automobile Manufacturers of South Africa said this month that car manufacturers including Volkswagen are expected to export more than 18% more vehicles this year in order to take advantage of the weaker rand.
The association predicted that domestic sales would decrease by 2.8% as consumers came under pressure from rising fuel costs and interest rates.