Auto
Volkswagen Invests $513m in South Africa
By Dipo Olowookere
Volkswagen has launched its new Polo and showcased the R6.1 billion ($513 million) investment in its plant and new products, in the presence of Eastern Cape Phumulo Masualle, the Deputy Minister Bulelani Magwanishe of the DTI, media representatives and key stakeholders.
In August 2015, VWSA Chairman and Managing Director, Thomas Schaefer announced an investment of around R4.5 billion rand in new product and facilities. The total investment exceeded R6.1 billion rand, which is partially due to exchange rate fluctuations and the approval of additional plant investments.
The majority of the investment spend was on Capital Expenditure for production facilities, local content tooling, quality assurance and manufacturing equipment as well as Information Technology upgrades.
Localisation remains a key priority for VWSA, with the new models at a 60% local content level, with on-going plans to achieve higher levels.
Volkswagen introduces the innovative One-line Concept for the first time as part of the investment; traditionally vehicles are assembled on unique production lines.
It has always been possible to build derivatives of the same platform on one line, but to build two completely different platforms on one line is a technical challenge, highly complex and requires new thinking and training for the employees.
The introduction of the one line concept also includes a new integrated logistics concept. Whilst there are no short term financial benefits there are synergies and efficiencies as well as people benefits that come about as the result of the one line concept.
Volkswagen is the only vehicle manufacturer which has the words “car” and “people” in its name. This remains relevant and true today. In line with being a socially responsible employer VWSA did not release any employees as the production volumes decreased during the ramp up, but rather retained them in training pools until the third shift commences in April, this year.
VWSA produced 110 000 cars last year, this will increase to 133 000 for 2018 of which 83 000 will be exported to markets around the world. This will include not only right hand drive markets but also to some left hand drive markets, especially for the Polo GTI. Maximum annual plant capacity is expected to be reached with a 3 shift operation of some 160 000 vehicles, in 2019.
Basic economic fundamentals and an investor friendly legislative framework within a reasonably stable economic environment are essential when making major investment decisions for Volkswagen, as is a stable and attractive automotive policy. “The South African Government must be complimented, firstly for the introduction of the MIDP, which gave confidence to the industry and provided a stable base for the successor programme; the APDP which has also been successful in ensuring a future for the automotive sector in South Africa. The Automotive Sector of the South African economy accounts for approximately 7.4% of the GDP and accounts for the direct employment of 113 000 people. I am convinced that the next phase of the APDP will continue in the same vein and allow for continued automotive investment,” said Thomas Schaefer, Chairman and Managing Director of Volkswagen Group South Africa.
The Premier of the Eastern Cape Phumulo Masualle said ”The automotive sector is one of the key sectors in our provincial economy mix, which we believe, alongside the Oceans Economy, Agriculture and Energy, if correctly leveraged, can see the Eastern Cape Province not only grow the regional economy and contribute towards further national economic growth but also become a leader in the drive to modernise and re-skill our work force. We are particularly encouraged by Volkswagen South Africa’s commitment to not only their continued and expanding investment in the South African economy, but also bold initiatives such as the announcement of an R86 million grant to SMMEs located in the manufacture and distribution space of automotive parts. This is a clear signal of the private sector accepting that South Africa’s future prosperity will depend on the societal effort all of us are prepared to invest, not just Government. We hope to continue our partnership to undertake a skills revolution in our province by jointly entering into training ventures so that we may be able to improve our skills base as an economy but also increase the employability and entrepreneurial prospects of our people.”
Deputy Minister Bulelani Magwanishe of the DTI commented “As the government, our commitment to local vehicle production is supported in our Industrial Policy Action Plan (IPAP); with a prime focus on adding value in the manufacturing and industrial sector. Export promotion, job creation and inclusive growth remain as the fundamentals of this policy. It is a privilege to commend VWSA on the launch of its new Polo and its investment of R6,1 billion. Therefore, this investment is particularly relevant to ensure expansion, socio-economic impact and the inclusion of Black Industrialists.”
“We also believe in the long term future of South Africa and Africa, for this reason the Volkswagen Group has created its fourth international region; the Sub Saharan Africa Region with VWSA being fully responsible for the region which will have substantial benefits for our company in South Africa. I believe that there are truly unique opportunities for us as an industry that we need to grasp, specifically here. As the automotive industry goes through radical change with electrification, autonomous driving, digitalisation etc. we must be ready to grasp these opportunities in Sub Saharan Africa”. added Mr Schaefer
The Volkswagen Group retained its number one position in the passenger market for the 7th consecutive year in 2017, achieving a 21.8% market share. One in every 5 cars bought by South Africans last year is either a Volkswagen or an Audi. The Volkswagen brand in the run-out year, of its volume models, the Polo and Polo Vivo achieved a share of 18.9% meaning that the Volkswagen Brand was the passenger market leader, even without its sister brand Audi.
The Polo Vivo and Polo have also been ranked the best selling cars in South Africa since launch in 2010. That is for 7 consecutive years. They are being replaced by the new Polo launched at the event and the new Polo Vivo which will be launched next month. “No doubt these will fare even better in the market in 2018 which we see increasing slightly too some 375 000 passenger cars from the 368 000 in 2017”, commented Thomas Schaefer.
By Adedapo Adesanya
Global leader in the spirits and wine industry, Pernod Ricard, in partnership with the Federal Road Safety Corps (FRSC), has launched the Don’t Drink and Drive campaign in Lagos to raise awareness about the dangers of drunk driving and promote responsible drinking habits among road users, during the Detty December festivities.
The campaign, themed Take Responsibility for Your Safety – Don’t Drink and Drive, aims to reduce road accidents and fatalities during the festive season and beyond. According to the FRSC, drunk driving remains a leading cause of road crashes in Nigeria, with Lagos State being particularly vulnerable due to its vibrant nightlife and high vehicle population.
Speaking at the launch event, the Managing Director of Pernod Ricard Nigeria, Mr Michael Ehindero, emphasized the company’s commitment to promoting responsible drinking and road safety.
“At Pernod Ricard Nigeria, we believe in encouraging responsible choices and promoting a culture of safety on our roads,” he said.
Corps Commander Kehinde G. Hamzat, Sector Commander of FRSC Lagos State, who was represented by Deputy Corps Commander Edith Eloka echoed the importance of collective responsibility in ensuring road safety. “Road safety is a shared responsibility, and we must work together to prevent crashes and save lives,” he said.
The campaign includes sensitization programs for commercial drivers, road users, and the general public, as well as collaborations with government agencies, civil society, and private sector partners to amplify the message of responsible drinking and road safety.
It is part of Pernod Ricard Nigeria’s global Sustainability & Responsibility roadmap, which aligns with the United Nations Sustainable Development Goal 3 that promotes good health and well-being, and is reflected in its global purpose statement, which states: “We are committed to being a responsible and sustainable company, creating a better tomorrow for all our stakeholders.”
The event secured 1,500 pledges from participants at the Ikeja City Mall, The Event Centre, and ABC Transport Company, with goodwill messages from stakeholders, including the National Union of Road Transport Workers (NURTW), the Ministry of Transportation, the National Drug Law Enforcement Agency (NDLEA), and the Nigerian Association of Road Transport Owners (NARTO).
While admonishing safe road usage, Corps Road Safety Commander, Mr Godwin Uweni, Head of Operations, Ikotun Unit Command FRSC, advised motorists to prioritize road safety and adhere to FRSC guidelines.
At ABC Motor Park, there was a head-to-head trivia competition with gift items and stickers with the “Don’t Drink & Drive” message to drivers, who were also encouraged to share their experiences on social media, using the branded hashtag, Don’t Drink and Drive.
Last year, the company partnered with FRSC and other stakeholders to promote road safety through the Don’t Drink and Drive campaign, and responsible drinking practices with its Drink More Water activation.
By Modupe Gbadeyanka
The United Bank for Africa (UBA) Plc has provided a financing facility worth about $100 million to assist Lagride expand its electric vehicle charging infrastructure in Lagos State.
The loan would also be used by the company to scale its Drive-to-Own programme and enable 3,500 Lagos drivers to transition from daily earners into long-term asset owners, business operators and mobility investors.
The partnership strengthens Lagos State’s transportation ecosystem and accelerates the shift toward a structured, technology-enabled and financially bankable mobility sector.
Over the past 10 months, Lagride has rebuilt its entire onboarding and operational system for drivers, known as Lagride Captains.
The platform introduced a performance-led Drive-to-Earn structure supported by weekly and monthly rental models. This system has generated consistent 90-day usage and repayment data across the fleet, allowing UBA and other financial institutions to assess driver performance with accuracy, confidence and transparency.
Eligibility for the programme is based on clearly defined performance thresholds, repayment discipline, safety compliance and service consistency.
Through this approach, Lagride has emerged as the most structured, data-driven and credit-ready mobility platform in Nigeria, setting a new benchmark for bankable driver financing and asset ownership.
EV Infrastructure Expansion
As part of the milestone, Lagride also unveiled an expanded electric vehicle charging facility in Alausa, Lagos, reinforcing its long-term commitment to clean, future-ready mobility.
The expanded infrastructure is designed to support the growing electric vehicle segment within Lagride’s fleet, reduce operational downtime and enable more efficient, sustainable transportation at scale. By pairing driver financing with practical EV infrastructure, Lagride is positioning itself as a mobility platform built not just for today’s Lagos, but for the next generation of urban transport.
“Lagride was created to give Lagos a modern, disciplined and technology-driven mobility system while ensuring that drivers are not left behind.
“The goal is for drivers who we call Captains to become business owners, fleet partners and mobility investors, not just drivers.
“This $100 million partnership with UBA moves thousands of captains closer to owning productive assets, managing multiple cars and building stronger financial futures. It is a major step forward in our commitment to driver prosperity and the future of smart mobility in Lagos,” the chairman of Lagride, Ms Diana Chen, said.
On his part, the chief executive of UBA, Mr Oliver Alawuba, said Lagride represents the kind of transformational, well-governed and data-backed initiative that UBA exists to support across Africa.
By Aduragbemi Omiyale
The Nigeria Police Force has said it would begin the enforcement of the controversial tinted glass permit despite an ongoing case in the court.
In a statement on Monday night signed by its spokesman, Mr Benjhami Hundeyin, the police said the reason for the resumption of the enforcement was due to insecurity in the country.
The enforcement, the statement noted, will resume on Friday, January 2, 2026, and motorists who require the tinted glass permit have been encouraged to apply through the approved channels and ensure that their vehicles comply with legal procedures.
The police noted that there was not a time the court prevented it from going ahead with the implementation of the tinted glass permit, noting that this was for the “safety of all citizens.”
“It is important to clarify that at no point did the court restrain the Nigeria Police Force from enforcing the provisions of the law regarding the use of tinted glass on vehicles.
“Nonetheless, in the spirit of responsibility, transparency, and public convenience, the Force suspended enforcement to allow motorists ample opportunity to regularise their documentation and complete the registration process without pressure,” parts of the statement today stated.
“Recent trends, however, reveal a disturbing rise in criminal activities perpetrated with the aid of vehicles fitted with unauthorised tinted glass. Some individuals and organised criminal groups have exploited this gap to conceal their identities and facilitate crimes ranging from armed robbery to kidnapping and other violent crimes.
“In view of this, the Nigeria Police Force has found it both necessary and urgent to resume full enforcement as a proactive measure to safeguard our communities.
“Consequently, enforcement of tinted glass permit will resume on January 2, 2026,” it declared.
“The Inspector-General of Police (IGP) Kayode Adeolu Egbetokun, assures the public that the renewed enforcement will be carried out with utmost professionalism, respect for the rights of citizens, and in accordance with extant laws.
“He adds that the Force remains committed to promoting public safety and upholding the rule of law while working collaboratively with all stakeholders to keep Nigeria secure,” the statement added.
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