Volkswagen’s latest R6.1-billion investment in its South African subsidiary would probably not have happened had the decision to spend been taken in 2017 rather than in 2015‚ local MD Thomas Schaefer says.
A deteriorating economy‚ depressed rand‚ toxic political environment‚ corruption and negative international sentiment all weighed against SA in 2017.
Volkswagen SA (VWSA) accounts for only 1.5% of global VW group production so its contribution could have been absorbed elsewhere.
With changes within the ANC leadership in December and subsequent strengthening of the rand against the euro‚ the investment was once again making sense.
"The environment is more positive. The rand is no longer tanking. We are coming back to a position where we can operate‚" he said on Thursday at VWSA’s Uitenhage assembly plant at the launch of the new Polo car range. A second model‚ the Polo Vivo‚ will be launched in February.
Schaefer hoped a third model would be added.
"The idea went on the backburner last year because of all the negativity.
"We hope our German parent will make a decision this year."
Please visit BusinessLIVE to read the full article.
Toxic politics can cost big money - VWSA highlights the risk
Image: Stock Photo
Volkswagen’s latest R6.1-billion investment in its South African subsidiary would probably not have happened had the decision to spend been taken in 2017 rather than in 2015‚ local MD Thomas Schaefer says.
A deteriorating economy‚ depressed rand‚ toxic political environment‚ corruption and negative international sentiment all weighed against SA in 2017.
Volkswagen SA (VWSA) accounts for only 1.5% of global VW group production so its contribution could have been absorbed elsewhere.
With changes within the ANC leadership in December and subsequent strengthening of the rand against the euro‚ the investment was once again making sense.
"The environment is more positive. The rand is no longer tanking. We are coming back to a position where we can operate‚" he said on Thursday at VWSA’s Uitenhage assembly plant at the launch of the new Polo car range. A second model‚ the Polo Vivo‚ will be launched in February.
Schaefer hoped a third model would be added.
"The idea went on the backburner last year because of all the negativity.
"We hope our German parent will make a decision this year."
Please visit BusinessLIVE to read the full article.
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