VW unveils 70-million-euro South African investment plan
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 70 million euros (85 million dollars) on top of around 500 million 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 chairman Martin Winterkorn as saying.
Production at the plant is expected to double this year as its press shop is modernised and expanded with 50 million euros in investment.
Another 23 million euros is expected to be spent on a new distribution centre in Centurion, near Pretoria, the statement said.
"Volkswagen is the market leader on South Africa'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.
© 2010 AFP