Volkswagen exports soar

Production Operators and Management at Volkswagen of South Africa celebrate the export of the company's 375,000th vehicle.

VWSA managing director David Powels described the extended Polo export order as a “mini windfall”.

“Our factory was set to shut down completely during the weeks before and after the Easter weekend. These plans have now been cancelled and we will run full production due to this increase in export demand,” he said.

The increased export order is a direct consequence of the German Auto Industry Financial Support Package, which includes a 2,500 euro payment to any driver who buys a new, low-emission passenger car and scraps an existing car that is over nine years old.

“The short-term demand created by the support package has resulted in Volkswagen of SA's receipt of the order for incremental export Polos. In view of the current uncertain business climate, we are delighted with this new development,” said Powels.

He said that over 40% of VWSA's total planned production volume in 2009 would be exported. “However, the situation in the global and domestic markets remains extremely volatile and depressed and as a result, our total overall production for 2009 is approximately 30% down on 2008.”

VWSA's initial export of vehicles occurred in the early 90s with the clinching of an export deal for 12,500 left-hand drive Jettas, destined for China. The company then proceeded to win orders for third generation Golf GTI's to the United Kingdom, a significant order for fourth generation Golfs to Europe, and, in 2004, started exporting Polos and new Golfs to the Asia Pacific region.

Following on its Jetta export heritage, the company secured the order to export the latest Jetta model to countries including Australia, Japan, and Great Britain.