VOLKSWAGEN SA announced yesterday it had formally stopped producing Citi Golfs after assembling the iconic car at its plant in Port Elizabeth for 25 years.

ARTWELL DLAMINI

David Powels, MD of Volkswagen, said the car maker intended to reveal the Citi Golf’s replacement in February.

Until August this year, SA was the only country that manufactured Citi Golfs, which began production at Uitenhage in 1984. Powels said new technology, rapidly evolving consumer needs and new trends in the vehicle industry had forced the company to finally “write the last chapter” on the Citi Golf.

He said it was “no longer commercially viable” to produce the historic car at its Uitenhage assembly plant as it lacked economies of scale, essential for both vehicle manufacturers and parts suppliers.

Powels said Citi Golf owners would continue receiving support and service.

He confirmed that no job losses had resulted from the stoppage. A small number of parts suppliers, which had other component supply contracts with Volkswagen and other original equipment manufacturers would be affected, he said.

In 25 years, Volkswagen had produced 377484 Citi Golfs.

Powels said the company was rebuilding its assembly plant to ensure high local content and high volumes, which gave the company economies of scale.

This, he said, was within the framework of the country’s Automotive Production and Development Programme, an industrial policy that seeks to foster high volume vehicle production and encourage local production of components.

The new policy replaces the current Motor Industry Development Programme in 2013.

Polo, the only model that is now being assembled at the local plant, would be produced at the revamped plant for the local and export markets, he said.

The replacement for Citi Golf, which has yet to be named, would be built locally and also targeted at the local market.

To realise localisation, Powels said, five parts suppliers had set up their facilities next to the Uitenhage plant.

“We are in the final phases of completely rebuilding and re engineering our plant in Uitenhage for new products to be introduced in SA in 2010,” he said of the R3,5bn investment.

Powels said the last Citi Golf rolled off the production line in August this year.

The company would continue to sell the Citi Golf through its dealership network into next year as it had already built a stockpile of the last batch.