VOLKSWAGEN Africa Group (VWA) has announced an investment of R4 billion for the manufacturing of its third model.
The third small SUV model would be manufactured at the Kariega Plant from 2027.
VWA also announced on Tuesday, 16 April, that the Eastern Cape plant will be the sole producer of Polo worldwide.
The investment comes at a time when the province has a 41,9% unemployment rate in the fourth quarter.
Local engineering student at Eastcape Midlands TVET College Siyabulela Msizi (21) sees VWA's investment as a beacon of hope for future job prospects.
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"The automotive industry is our last hope and source of employment here in the Eastern Cape, particularly in the Gqeberha area. It would be a futile exercise if they announced this investment and did not employ us," he said.
Eastern Cape Premier Oscar Mabuyane said: "This is a necessary condition for the growth of the economy and the creation of jobs on a scale that will significantly reduce levels of unemployment in the province. The investment in production sectors of the economy is vital to the provincial government’s ongoing efforts in reducing poverty and inequality. VWA continues to play a substantial role in the economic development of the province by creating job opportunities, especially for the youth,"
VWA chairwoman and managing director, Martina Biene, said that the investment would secure the current level of employment and maintain the current three shifts of their 4 000 staff.
"What normally happens in the cycle is that the models you produce are aging and have less demand. That means we have to come up with new models to secure jobs. There are rising job opportunities for our suppliers as we move to this new model and manufacturing of Polo," she said.
Minister of Trade, Industry, and Competition, Ebrahim Patel, who was also at the announcement, said the investment signals and reaffirms the commitment of Volkswagen Group to Mzansi and the African continent.
