On track to end this year with a new record production volume in one year while Volkswagen in Germany struggles.
Good news is coming out of Volkswagen Group Africa’s plant in Kariega (Port Elizabeth) with record production figures and an additional 3 megawatt (MW) solar power has been added to the company’s grid, bringing the total output of renewable energy to 5.9 MW. This is enough energy to power at least 2 000 two-bedroom houses fitted with geysers and using electrical appliances.
Ulrich Schwabe Director of Production and Logistics at Volkswagen Group Africa Director has proudly posted on social media that: “The month of October has an excellent history for Production at Volkswagen Group Africa. In October 2019, we set the record for the most vehicles produced in one month, building a total of 16 453 vehicles. Now, I am proud to say, in October 2024 we have done it again!”
“We closed off October 2024 month with a record volume of 16 597 units of our popular Volkswagen Polo and Polo Vivo. Not only that, but we are well on track to end this year with a new record production volume in one year of over 165 000 vehicles at our Kariega plant.”
“I am immensely proud of the entire production and logistics as well as production support teams who have made this possible, the people who come to work every day and give their best so that our customers can experience the best. Thank you for your commitment to excellence and your loyalty to Volkswagen Group Africa – together, we are making 2024 a year of achievements.”
Plant closures and structural change shock the Group in Germany
Meanwhile in Germany it is reported that Volkswagen is facing tough cuts. At least three plants could soon close. Despite high profits, the Group is struggling with structural problems and the urgent transformation to electromobility. The crisis is a shock for the German automotive industry and a wake-up call for Germany as an industrial centre because the pressure to adapt quickly and comprehensively has rarely been greater, writes Engin Günder.
Volkswagen is facing one of the most difficult challenges in its recent history. The possible closure of at least three plants represents a deep cut that is causing a stir not only among employees, but in the entire automotive industry. The move does not come as a surprise to many, but the tremors are being felt in an industry that has been on the brink of collapse for years.
The background of the crisis is the massive upheaval in the automotive industry. Structural challenges and increasing competition from new market players are weighing heavily on the Group as well as putting the established car manufacturers under pressure. The technological gap that Volkswagen and other German manufacturers have to make up against innovative competitors such as Tesla is particularly serious. The billions invested in new drive types and digitalisation are weighing on the company, as are the recent losses in strategic markets, including China.
Volkswagen has pursued ambitious realignment plans in recent years. The Group is investing in sustainable technologies and striving to become the market leader in the field of electromobility. However, the change is not happening fast enough and the demand for conventional combustion engines remains an uncertain factor. The question of how long the conventional business will remain profitable is causing uncertainty. The decision to close sites could therefore be seen as the consequence of a years-long adjustment process, which is now becoming an existential risk for thousands of employees.
Volkswagen’s crisis is a wake-up call to the entire German industry. The company, once the poster child for German engineering spirit and innovative strength, is in danger of falling behind in a changing world. The announced plant closures are just the tip of the iceberg. They show that structural change can no longer be stopped and that German car manufacturers must either adapt – or be side-lined.
