• Reports claimed Volkswagen might close its Kariega factory in the Eastern Cape, putting nearly 4,000 direct jobs at serious risk.

• Volkswagen communications head Andile Dlamini denied the closure claims, saying the managing director never mentioned closing the plant in Kariega.

Volkswagen has denied reports that it plans to close its factory in Kariega in the Eastern Cape.

Reports this week claimed the German car maker might shut down its South African operations. They warned that nearly 4,000 jobs at the Kariega plant were at risk.

The reports said 2026 would be a make or break year for Volkswagen in South Africa. They claimed the company needed to secure new investment from its German parent company to keep the factory open.

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Andile Dlamini, Volkswagen South Africa's head of communications, said the company would not comment on the reports. He said some reports were published without the full context of the managing director's statement.

"At no point did our MD mention or allude to the closure of Plant Kariega," Dlamini said.

Volkswagen said 2026 would be a milestone year for the company. It will celebrate 75 years of building and selling vehicles in South Africa. The company is also marking 30 years of Polo production in Kariega.

The Kariega plant has built four generations of the Polo. The latest model has been in production since 2021. More than two million Polo cars have been produced at the factory. They have been exported to 38 countries.

Ulrich Schwabe is Volkswagen Group Africa's production director. He said reaching 75 years in South Africa and 30 years of Polo production was a proud moment.

"This milestone is a testament to the dedication, skill, and passion of our employees," Schwabe said.

Volkswagen has also committed to building its new Tukan bakkie in South Africa. The company could start producing the first units at the Kariega plant in 2029 or 2030.