German motor vehicle manufacturer, Volkswagen has taken over the new vehicle assembly processes in Ghana from the brand’s licensed retailer, Universal Motors Limited (UML).
UML was awarded the assembly contract when Volkswagen officially established Volkswagen Ghana, a 100 per cent subsidiary, in August, 2020.
UML assembled models such as the Tiguan, Teramont, Passat, Polo, Amarok and T-Cross on behalf of Volkswagen, using semi-knocked down assembly kits imported from South Africa.
Volkswagen Ghana has subsequently opened a new 5000m² vehicle assembly facility, which is located near the Port of Tema, in Accra.
It has an installed capacity to assemble 5,000 units a year and the facility will churn out the T-Cross, Tiguan, Amarok and Virtus sedan.
In the beginning, the new assembly facility will create about 80 jobs, including local third-party service suppliers.
Volkswagen was the first automotive company to be registered under the Ghana Automotive Development Programme (GADP).
Chairperson and Managing Director, Volkswagen Group, South Africa, Martina Biene, said: “Ghana is an important market for our sub-Saharan Africa expansion plans, especially in West Africa, where we have identified opportunities of developing a collaborative automotive industry hub among countries in the region.”
“The hub concept will ensure that each country with an automotive development policy or economic interest in the automotive industry has an important role to play in the supply value-chain.
“We believe the African Free Trade Continental Area will be the catalyst, which will unlock trade barriers and promote regional collaboration among the countries.”
Biene added that Volkswagen remains “fully committed” to Ghana’s industrial transformation agenda, despite the current economic challenges facing the country.
“We are here for the long haul. Our company believes in long-term investments, which are nurtured through mutual relationships with like-minded partners.
“Ghana’s commitment to the development of its automotive industry is evident in the GADP, which is still the blueprint automotive policy in the region in terms of creating an enabling environment for the establishment of an automotive industry in sub-Saharan Africa.”
Ghana is the fourth Volkswagen assembly location in sub-Saharan Africa.
The other locations are in South Africa, where Volkswagen has been manufacturing vehicles for more than 72 years, as well as Kenya and Rwanda.
Volkswagen has a presence in 17 countries in sub-Saharan Africa where it sells passenger and commercial vehicles through licensed importers.
“As the last frontier for the global development of the automotive industry, sub-Saharan Africa has become very important for the sustainability of Volkswagen,” Biene said.