Latest news with #MartinaBiene
The Herald
a day ago
- Automotive
- The Herald
Closure of any business spells disaster for Nelson Mandela Bay
With unemployment in the Eastern Cape nearing 40%, the closure of any business is more than just an economic setback — it is a community crisis. On Thursday, Goodyear SA announced plans to shut down its plant in Kariega, with 907 jobs at risk. VW Group Africa MD Martina Biene said every business closure spelt disaster for the manufacturing city. She spoke at the Women Empowerment Network event hosted by the Nelson Mandela Bay Business Chamber at the Boardwalk on Friday. 'It is sad for everyone when a business has to close, even more so in the Bay,' Biene said. 'We still have an unemployment rate of 40%. 'Every business that closes in the Bay is a disaster.' In its report on liquidations in SA, Stats SA revealed that the country had seen 109 business liquidations in April 2025 and 482 business closures since the beginning of the year. Biene said this spoke to the early signs of deindustrialisation in SA. She said VWGA purchased tyres from Goodyear, but the majority were imported to keep manufacturing costs down. 'We are looking at buying tyres from India. 'VW needs to keep manufacturing costs low. 'We all must look at local is lekker , but lekker sometimes comes at a higher price.' Asked what conversations were being held at a national level to ensure the manufacturing business in SA remained sustainable, Biene said a review of the SA Automotive Masterplan 2035 had to happen sooner rather than later. 'On the automotive industry side, we will propose some short-term measures to probably take away the burden. 'Some of the assumptions of the automotive plan in SA and how the sector grows in SA, as well as how much the domestic market plan grows, have not been met.' Out of the seven OEMs operating in SA, Mercedes-Benz SA in East London is the only one now exporting directly to the US However, Biene said that due to the interconnected supply chain, any disruption threatened the broader industry. 'We have common suppliers; we share suppliers because the suppliers are not viable if they manufacture for one of us. 'As much as we compete in product in the market, specifically manufacturing, we're all in this together and we need each other and eagerly look forward to more coming in, such as Stellantis, to stabilise the local industry. 'What we're seeing in SA now is that the local automotive industry is on the verge of being replaced and becoming an import market. 'From a VW perspective, I know we're perceived as being expensive, and this is not because we make a lot of money in this country. 'Manufacturing costs a lot in SA. 'The domestic market is small. 'Last year, Suzuki in India produced two-million cars while all seven OEMs here in SA manufactured 600,000. 'Previously, we were competing with products from Europe 15 years ago, under European labour costs and European standards, but now we're competing with Indian and Chinese labour costs. 'The competitive landscape has changed, but we remain the same with our labour costs. Looking at Indian labour costs, then I'm not so sure if I'm competitive. 'If something were to go wrong with us, the Bay would be in deep trouble.' Chamber CEO Denise van Huyssteen said while investors needed to come to SA, the government needed to retain those already here. The Herald
Zawya
6 days ago
- Automotive
- Zawya
Volkswagen considers Egypt as African production hub amid shift from Europe
Arab Finance: Volkswagen AG is exploring plans to produce cars in Egypt as part of a broader strategy to expand across African markets while scaling back operations in Europe, Bloomberg reported, citing Martina Biene, Managing Director at Volkswagen Group Africa. 'We are very interested in Egypt as a production hub and hopefully, we can announce a business case anytime soon,' Martina Biene said. The German automaker is considering starting with an assembly unit using existing facilities in Egypt, with the possibility of building a dedicated factory at a later stage. The move comes as Volkswagen cuts production capacity and jobs in Germany in response to rising costs, subdued demand, and intensifying competition from lower-cost Chinese brands. Sister companies Audi and Porsche are also reducing their workforce to curb expenses. Egypt is positioning itself as a manufacturing and export base after enduring a prolonged economic crisis. The government sees the auto sector as a key growth driver, estimating local demand at over $8 billion annually over the next decade. Biene highlighted Egypt's appeal not only due to its large domestic market but also its strategic location for access to consumers in the wider Middle East and Africa. This contrasts with Morocco, Africa's current automotive leader, which is heavily geared toward exporting to Europe. 'In Morocco, the car business is very much focused on exporting to Europe,' Biene noted. 'We are currently not looking for expanding our footprint with plants to export to Europe, because we've just closed plants in Europe.' Volkswagen plans to reduce its German production by more than 700,000 units and cut 35,000 jobs by 2030. The company has long faced challenges in cost-sensitive regions such as Africa, India, and Southeast Asia, where it competes with leaner rivals like Toyota and Hyundai. VW currently operates a full manufacturing facility in South Africa and assembly plants in Ghana, Rwanda, and Kenya. It aims to establish up to five production sites across Africa over the next 10 to 15 years, each tailored to different models and export markets within the continent. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
News24
7 days ago
- Automotive
- News24
Volkswagen wants to build cars in Egypt to sell across Africa
• For more financial news, go to the News24 Business front page. Volkswagen is considering producing cars in Egypt, part of plans to tap new African markets as it grapples with weaker demand at home. 'We are very interested in Egypt as a production hub and hopefully we can announce a business case anytime soon,' Volkswagen Group Africa's managing director, Martina Biene, said in an interview. Under the possible moves, Europe's largest carmaker could first establish an assembly unit by using existing facilities. A potential next step would be to build a local factory in the Middle East's most populous nation, Biene said. VW is cutting production capacity and jobs in Germany due to increasing costs, weaker markets in Europe and the rise of cheaper Chinese competitors. Sister brands Audi and Porsche are also shedding workers to reduce costs. The deliberations come as Egypt strives to attract foreign investment and boost local manufacturing and exports after emerging from a grueling two-year economic crisis. The auto industry could be a key driver, with the government estimating local demand at more than $8 billion per year over the next decade. Egypt's domestic market and its proximity to consumers in the rest of the Middle East and Africa may be among the draws for the location. That makes it different from Morocco, currently Africa's leading passenger-car manufacturer and largest exporter, Biene said. In Morocco, the 'car business is very much focused on exporting to Europe,' she said. 'We're currently not looking for expanding our footprint with plants to export to Europe, because we've just closed plants in Europe.' VW, which plans to trim German production capacity by more than 700 000 units and cut 35 000 jobs by 2030, has traditionally struggled to compete in cost-sensitive markets like Africa, India or Southeast Asia against leaner rivals such as Toyota or Hyundai. The company currently has a full-fledged manufacturing plant in South Africa and assembly facilities in Ghana, Rwanda and Kenya. It targets operating as many as five production facilities across Africa over the next 10 to 15 years, with each producing different models and exporting to other markets on the continent.
Bloomberg
03-06-2025
- Automotive
- Bloomberg
Volkswagen Looks at Making Cars in Egypt to Sell Across Africa
Volkswagen AG is considering producing cars in Egypt, part of plans to tap new African markets as it grapples with weaker demand at home. 'We are very interested in Egypt as a production hub and hopefully we can announce a business case anytime soon,' Volkswagen Group Africa's managing director, Martina Biene, said in an interview.
Reuters
05-02-2025
- Automotive
- Reuters
Volkswagen's African unit makes record Polo exports to Europe, Asia
CAPE TOWN, Feb 5 (Reuters) - Volkswagen's (VOWG_p.DE), opens new tab African unit exported a record 131,485 Polos to European and Asia-Pacific markets in 2024, Europe's biggest carmaker said on Wednesday. That was a big increase from the previous export record of 108,422 vehicles in 2019 from its manufacturing plant in Kariega in South Africa's Eastern Cape province, Volkswagen Group Africa said in a statement, without giving figures for 2023. As of July 2024, Volkswagen Africa is the sole exporter of the Polo for European and Asia-Pacific markets, delivering the model to 38 countries. Overall, these Polos accounted for 88% of exported vehicles from South Africa last year, the company said. The Polo hatchback also performed strongly in the local market last year, selling 12,253 units and taking fourth place in the segment, it added. The locally-built Polo Vivo claimed the top spot in the segment, with 25,914 units sold. Speaking to Reuters on the sidelines of the annual Africa Mining Indaba, Martina Biene, the chairperson and managing director at VGA, said the auto industry had been benefiting from lowering interest rates, availability of constant power supply and improvement at South Africa's ports and rail network. "There is a positive movement, although it's not like sky-rocketing, I would say," she said, referring to the performance of the industry. Power cuts have been a drag on South Africa's economic growth for more than a decade, impacting businesses including manufacturers. Until Jan. 30, there had been none since March last year after a sudden turnaround in the performance of power utility Eskom's generation fleet.
