On April 16, it was announced that the VW Group will invest around ZAR 4 billion at its Kariega plant, in South Africa.
This investment aims to modernize the facilities in preparation for the launch of a new vehicle model in 2027. Most of the funds will be used for upgrading production facilities, manufacturing tools, local content tools, and quality assurance. Around ZAR 850 million will be invested to enhance automation in the body shop, while over ZAR 400 million will be invested in the press shop for the acquisition of new press tooling equipment.
This project is estimated to start by the end of 2024, during a plant shutdown.
The upcoming model, an SUV, is being developed by teams from Brazil and South Africa to meet both local and continental requirements.
Regarding EVs, Volkswagen anticipates a slower transition in Africa compared to other regions around the world, so the brand will keep on selling ICE vehicles for some more time in these markets, however, the ID.4 will be introduced for test fleet in Rwanda during 2024.
(Multiple sources on April 16, 2024)