Volkswagen boss, Thomas Schaefer, has cast doubt on the future of the company’s South African plant, saying “We’re not a charity” 1.
Volkswagen’s South African plant, located in Uitenhage, has been in operation for over 70 years and is the largest private employer in the Nelson Mandela Bay metro area 2. However, the company has been struggling with declining sales in the country, with sales dropping by 17% in 2021 1. In addition, the company has been facing challenges with the supply of semiconductors, which has led to production cuts 1.
In an interview with Business Day, Volkswagen boss, Thomas Schaefer, said that the company’s South African plant was not a charity and that it needed to be profitable 1. He added that the company was looking at ways to improve the plant’s competitiveness, including reducing costs and increasing efficiency 1. However, he also said that the company could not continue to invest in the plant if it was not profitable 1.
Conclusion:
Volkswagen’s South African plant is facing an uncertain future, with the company’s boss, Thomas Schaefer, casting doubt on its profitability 1. The company has been struggling with declining sales in the country and challenges with the supply of semiconductors 1. While the company is looking at ways to improve the plant’s competitiveness, including reducing costs and increasing efficiency, it remains to be seen whether these efforts will be enough to secure the plant’s future 1.