Edward West
9 May 2008
Johannesburg — VOLKSWAGEN SA will grow its export volumes to new records this year after it was awarded a contract for 10260 fifth-generation Jettas, the company said yesterday.
Volkswagen SA MD David Powels said the company planned to export more than 40000 vehicles this year. This included the new export order for Jettas which would be sold in countries including Australia, New Zealand, Japan, UK and Ireland.
"The Volkswagen worldwide group posted record sales last year which continued in the first quarter this year, placing the group's worldwide production facilities under capacity pressure. As a result, Volkswagen SA has been given the opportunity to build fifth-generation Jettas for these key right- hand drive markets," he said.
The additional order came on top of a plan to export 21000 fifth-generation Golfs and 8800 Polos this year to countries in the Asia Pacific region, with most of the cars going to Japan.
The exports were a chance for Volkswagen SA to show its parent and clients in many other countries that the Uitenhage plant was capable of producing world-class vehicles, Powels said.
The exports were also welcome as domestic sales volumes were under pressure from macroeconomic factors. He said Volkswagen SA -- a wholly owned arm of Volkswagen in Germany -- expected to build about 10000 vehicles this year, with 40% exported.
By the end of last month, about 100000 fifth-generation Jettas would have been exported to Asia Pacific countries and about 350000 vehicles would have been exported by the company to various markets worldwide.
The National Association of Automobile Manufacturers of SA (Naamsa) said the domestic vehicle manufacturing industry was expected to export 285000-300000 vehicles this year, well up on about 171000 last year.
Naamsa executive director Nico Vermeulen said SA's automotive policy regime had confirmed its value at a time when domestic vehicle sales were under severe pressure.
Powels said Volkswagen SA had optimised its vehicle, engine and component exports under the Motor Industry Development Programme and exports would be at the core of strategy.
Volkswagen, which reported its highest pretax profit to date of € 6,5bn last year, lifted revenue 1,4% year on year to € 27bn in the first quarter of this year, compared with the three months to December 31 last year.
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