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The bond between Volkswagen and Kenya which started back in the 1960s when Volkswagen assembled the Beetle in the East African country is about to be renewed. Volkswagen is now returning to the country, initially with the Polo Vivo just as it also planned to review local production of further Volkswagen models should the new vehicle market show positive development.
And as Volkswagen continues to drive forward with the regionalisation of the global automotive business by increasing its commitment in Africa, the German carmaker, Wednesday in Nairobi, signed a deal with the Kenyan Government that would see it start the production of Polo Vivo in the East African country by the end of 2016.
The agreement, signed by the Kenyan Government and the Chairman and Managing Director of Volkswagen South Africa (VWSA), Thomas Schaefer, in the presence of President Uhuru Kenyatta of Kenya, is considered as a crucial step by Volkswagen towards engaging further in new emerging markets – with the right products and know-how from the region.
The project, which is to be sited in the Kenyan city of Thika near Nairobi, is in partnership with the importer DT Dobie, and it will be Volkswagen’s third production facility in Africa – alongside the South African factory and a local production facility in Nigeria.
The plan is to build up to 5,000 units of the Polo Vivo per year at the plant operated by Kenya Vehicle Manufacturers (KVM) from 2017.
“We are taking the successful Polo Vivo from South Africa to Kenya to leverage the enormous growth potential of the African automobile market and participate in its positive development. This compact model is the best-selling car in the Sub-Saharan region – so it is the ideal entry model for the promising Kenyan market,” a statement issued in Nairobi and Wolfsburg quoted the Chairman and Managing Director of VWSA, Schaefer, as saying at the signing ceremony.
Schaefer added: “With this move, we are strengthening the brand’s overall position in Africa and taking an important step towards expanding our commitment in the region.”
In his remarks at the ceremony, President Kenyatta, was quoted as saying: “The investment by the Volkswagen Group in Kenya is a key milestone in my administration’s determined push to grow the manufacturing base and industrialised the nation.”
Aside the production of the Polo Vivo at the facility, Volkswagen is also planning to establish a local training centre to qualify production workers and provide further training. The centre, according to the statement obtained by AUTO REPORT AFRICA , will initially focus on the needs of the Volkswagen production team but will later provide basic training for young people to learn general industrial skills, thereby increasing employment opportunities in the region in general.
As one of Africa’s emerging markets, Kenya plays a prominent role among East African nations and with a GDP of some US$ 63 billion, it is one of the strongest economies in the East African Community (EAC).
Kenya is also an important transit country for trade throughout East Africa and the good economic relations between Kenya and Germany also benefit from ongoing strategic political support.
