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VW to invest R650m in SA

Jun 17 2010 11:52

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Frankfurt - Europe's biggest automaker Volkswagen said on Thursday it would expand its South African operations with investments in a plant in Uitenhage and a distribution centre near Pretoria.

VW said it would invest about €70m (R650m) on top of around €500m already ploughed into South Africa over the past four years as part of its goal to become the world's biggest carmaker.

"The Uitenhage plant plays an important role in this context," a statement quoted VW chairperson Martin Winterkorn as saying.

Production at the plant is expected to double this year as its press shop is modernised and expanded with €50m in investment.

Another €23m is expected to be spent on a new distribution centre in Centurion, near Pretoria, the statement said.

"Volkswagen is the market leader on South Afric's passenger car market. Our existing investment, coupled with the new measures, lays the foundation for staying on our growth path," Winterkorn said.

VW hopes to overtake Toyota as the world's leading carmaker by 2018.


  - Sapa

 

 
 
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