2035 will be the end of combustion engines, the European Union announced. This means the end of the export of VW Polos manufactured at the VWSA Kariega plant, yet Martina Biene, the first ever female Volkswagen South Africa group chair and managing director, is geared up for the production of a first of its kind electric vehicle in Africa.
On day three in office, Biene said she is excited about the future of Volkswagen in Africa. Before her move to South Africa, Biene was situated in Wolfsburg where she was responsible for the small product line including compact vehicles with the likes of the Polo, Polo Vivo and T-Roc as well as Chinese and Brazilian products.
Biene has worked extensively on the pro-duct future for the South African and African markets, and she intends to apply the experience and knowledge she gained at the Kariega plant.
“We need to fill the plant with locally produced vehicles to increase Volkswagen’s footprint in Africa,” said Biene.
According to her, the Volkswagen brand in South Africa is in very good shape.
“At this point we are not talking about a Polo replacement. The Polo and Polo Vivo will remain beyond 2025 because they are such loved products. We are looking at a third product, an electric vehicle that is currently not produced anywhere in the world, and it is our task also to take it to the next loved brand level.
“It will have an SUV kind of body style to suit the South African and African markets and it will be very much shaped for the Asian and Latin American markets as well.”
To make this happen, many preconditions must be in place, Biene emphasized. “A stable grid, the source of power and getting battery cells closer to the manufacturer. The raw material is here.
“This is an opportunity for South Africa and other African markets. The continent offers so many resources for power. Solar, wind as well as hydro power could be super big,” said Martina Biene, VWSA group chair and managing director.
“For Volkswagen this is the way forward and we will probably not remain in the realm of vehicles but evolve also into the realm of power and energy storage solutions.”
Thomas Schaefer, former VWSA group chair and managing director, recently celebrated his first 100 days in office as global chief executive of Volkswagen Passenger Cars Brand and head of Brand Group Volume in Wolfsburg to oversee the VW brand along with Skoda and Seat/Cupra.
Schaefer praised Biene for the way she embraces South Africa.
“We need South Africa to play a significant role in the business. We need to get Africa going.
“Our business is dependent on export to Europe and if Europe starts changing the rules, business will be under pressure.
“The entire industry is developing into electric vehicles; there is no way back. Thus, we need a regional market and we are determined to grow the African market to define our future on the continent.”
Schaefer said Volkswagen as a group strive to build cars where they are sold. “The logistics and shipment of cars are becoming more and more expensive. The long-term business model that makes sense is to focus on regional markets.
“All over the world we face incredible disruptions in the supply chain, shortages of semiconductors, logistics problems, the impact of the war in the Ukraine.
“But so far, we have managed to be financially sound and have closed the third quarter with good numbers considering the disruptions we are facing. The demand is incredible all the way into next year and we do everything possible to deliver.”
Schaefer said his priorities are “best brand, best products and best results.”
He added that Volkswagen is a loved brand in South Africa, but that various challenges in other parts of the world (the diesel aftermath, changing to electric vehicles, etc) necessitated an innovative approach to establish Volkswagen once again as the beloved “people’s car of great quality and content”. To achieve this, the Energize program has been put into place to change car designs, content, and portfolios.
“In a sense we say we should rather do less, but let’s do it really well.”
Regarding best products, Schaefer said the focus is on the whole customer journey and holistic experience. “This entails everything that a customer experience from the initial contact with the brand all the way to aftersales.”
The above approach resulted in the changing back to a steering wheel with buttons and to move away from sliders. Also, the ID.3, Volkswagen’s first electric car, will undergo optical upgrades as well as the touch and feel of the interior.
Regarding the best results, Schaefer said it is all about the right brand products with the right content.
“Good quality rather than quantity. If you don’t do good business you cannot survive, especially going forward in challenging times.”
