Volkswagen to Invest $340 Million in South African Car Business

Volkswagen plant in Uitenhage, South Africa. Photographer: Henner Frankenfeld/Bloomberg

Volkswagen AG, which is seeking to become the world’s largest automaker by 2018, is investing more than 4.5 billion rand ($340 million) in South Africa for new products and infrastructure.

The German manufacturer will spend about 3 billion rand on production facilities at Uitenhage, near Port Elizabeth in the Eastern Cape province, and 1.5 billion rand on improving the supply chain by 2017, the Wolfsburg-based company said in an e-mailed statement on Thursday.

“Exports will again play a key role in our strategy going forward,” Thomas Schaefer, managing director of Volkswagen Group South Africa, said in the statement.

Read more: Volkswagen to Invest $340 Million in South African Car Business – Bloomberg Business

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