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Volkswagen clarifies speculations on South African plant transfer to Germany

Volkswagen of South Africa (VWSA), currently the producer and exporter of the VW Golf 5 model for the Asia Pacific market, was quick to squelch a report published by a certain German newspaper, which states that Volkswagen is planning to shift its Golf Production from South Africa to Germany.

“Purely Speculative.” Those are the firm words of VWSA spokesperson Bill Stephens.

In an issued statement, Stephens further vehemently denied that such plans exist: “No decisions have been taken with regards to rationalizing the future Golf and Jetta production platforms within the VW group.”

However, Stephen also browsed over the effects if such a situation would indeed occur, as he further stated that, “If at some future stage it was decided to rationalize Golf and Jetta production in Europe, the Golf and Jetta brands would continue to be marketed in South Africa on a fully built-up basis.”

“At the same time, an alternative production platform would be established in South Africa, enabling Volkswagen of South Africa to optimize production volumes to both domestic and export markets.”

Stephens further adds that this probable strategy would definitely ensure job retention to existing workers, as well as guarantee that there is absolutely no threat to the Volkswagen’s established brands such as the Golf and Jetta in the South African soil. He then closed his statement with another reassurance that all of these are pure speculations only, and that Volkswagen is very much contented with its South African plant.

The issue was initialized by German newspaper, Wolfsburger Allgemeine Zeitung, with a released article dated Friday that Volkswagen is planning to shift the manufacturing duty of its VW Golf 6 model from South Africa to Germany, specifically from Uitenhage to VW’s primary production plant in Wolfsburg. According to the newspaper, the continental move is based on a pledge agreed upon by the Volkswagen board and Germany’s Trade Union in this year’s wage negotiations. The company was said to have promised a new VW model to the Wolfsburg plant, equivalent to 1,100 German jobs, provided that the workers would dedicate lengthier work hours but without the additional pay.

The German article further asserted that the production will be move somewhere in the middle of 2008. And that no final decisions will be established until Volkswagen comes up with the alternative production for Uitenhage, South Africa.

This entry was posted on Thursday, August 9th, 2007 at 12:16 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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