COSATU welcomes Volkswagen’s R4 billion investments in its Kariega Assembly Plant, in the Eastern Cape

The Congress of South African Trade Unions (COSATU) welcomes Volkswagen (VW)'s announcement of a R4 billion investment in its Kariega Assembly Plant in the Eastern Cape. This will not only help add a new model to its production line and ready it to be VW's sole global manufacturer of its very popular Polo model but also secure the jobs of 3 500 workers directly employed and support 50 000 indirect jobs.

This exciting investment is a sign that the African National Congress led government's efforts with industry and labour through the Automotive Masterplan are bearing fruits. It will help to only not sustain and grow our automotive exports to North America and Europe but also position industry to take advantage of the pending African Continental Free Trade Area currently being negotiated.

It builds upon an existing R50 billion of investment commitments in the automotive sector, including the R3 billion Stellantis plant to be built in Coega and 10 new factories employing 3 300 workers and supplying Ford in the Tshwane Automotive Special Economic Zone.

These collective efforts have seen a record number of vehicles, just under 400 000, exported in 2023.

COSATU is heartened that in spite of our many challenges as a nation, through the industrial master plans, the Department of Trade, Industry and Competition; business and labour are making positive progress in removing the obstacles to growing the economy and we are beginning to see real green shoots.

Whilst we welcome these positive developments, we have much more to do. We dare not rest whilst we have a 41% unemployment rate and an economy in need of active support and facing many headwinds. We are confident that the kinds of social compacts we are crafting in the industrial master plans will lay the foundation for success.

Issued by COSATU

For further information please contact:
Matthew Parks
Acting National Spokesperson & Parliamentary Coordinator
Cell: 082 785 0687