The Volkswagen plant in Kariega produces over 100,000 Polos per year.
Parliament has expressed concern about the future of Volkswagen South Africa’s Kariega plant, following reports that Volkswagen Group is embarking on a significant global restructure that could involve up to 100,000 job reductions and a reduction in production capacity.
Although the full details of the plans have not been disclosed, reports suggest that Volkswagen Group is looking to streamline its global model range while reducing annual production capacity from around 10 million vehicles to approximately 9 million.
While most of the capacity and cost restructuring is expected to be centred on Europe, with no plant closures outside that region announced, a local parliamentary committee chair has referred to Volkswagen’s global challenges as a “wake-up call” for South Africa.
Chairperson of the Select Committee on Economic Development Sonja Boshoff said the developments served as a stark reminder that South Africa could not afford to become complacent in an increasingly competitive global manufacturing environment.
