Volkswagen Group South Africa welcomes the tone and direction of the 2016 budget presented today by Minister of Finance, Pravin Gordhan. The clear focus on reduced government spending and the plans to review the future as well as the role of some of the state assets are to welcomed. This will go some way in alleviating the concern of the rating agencies which will hopefully help to stave off a downgrade by the rating agencies. This together with a clear attempt to increase revenues will help to restore some of the investor confidence that was lost in December after the change in finance ministers.
“The fact that the government is giving priority to the state of our economy and taking concrete steps to restore faith in the future of the country will be welcomed by our parent company, especially in light of the R4.5 billion investment programme that we have embarked upon,” said Chairman and Managing Director of Volkswagen Group South Africa, Thomas Schaefer after having familiarised himself with the highlights of the 2016 budget speech.
Schaefer further added, “consumers will feel the pinch and will have to be more prudent with their spending habits as the additional measure and taxes kick in, but this is for the good of the economy and the country and will earn long term rather than short term returns”.
Volkswagen the passenger market leader for six consecutive years and who continue to dominate the entry level segments of the passenger market with its Polo and Polo Vivo models is well positioned to further capitalise on the down buying trend that has been seen in recent years.
The Polo and Polo Vivo are the only entry level vehicles produced in South Africa with over 50% of the production of the Polo at Volkswagen’s Uitenhage factory also being exported largely to right hand drive markets.
“We produce German engineered products with a South African heart for both our local and international customers. We are confident that in the current tough economic climate our local products will be even more desirable than before,” concluded Schaefer.
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