Expand African production capacity Volkswagen sets up assembly plant in Ghana

SMM: it is reported that Volkswagen plans to open a new plant in sub-Saharan Africa to expand its car production capacity in Africa. Volkswagen said it had officially set up an assembly plant in Accra, Republic of Ghana. Previously, Volkswagen has built car plants in the Republic of South Africa, Kenya, Nigeria and Rwanda.

, Universal Motors became a licensed importer of Volkswagen in 2005 and has been signing contracts with the Volkswagen plant since then, and this time won the initial assembly contract for the Ghana project. The Accra car plant, which is expected to have an annual capacity of 5000 vehicles, will use semi-bulk parts to assemble (SKD) Tiguan, Teramont, Passat, Polo and Amarok.

Nearly two years ago, Volkswagen signed a memorandum of understanding with the Ghanaian government in the presence of German Chancellor Angela Merkel (Angela Merkel). Now Volkswagen is building a factory here to further promote cooperation between the two countries. It is reported that Ghana has also taken action to announce the launch of the Ghana Automobile Development Policy (GADP). Ghana became the first car company to be established under GADP, which is wholly owned by Volkswagen. The company will be responsible for the import of SKD kits and full production of cars. Jeffrey J. Oppong Peprah was appointed CEO of Volkswagen Ghana.

Last year, in order to attract international companies such as Volkswagen and Nissan to invest and build factories in the country, the Ghanaian government decided to provide 10-year tax breaks to automakers that set up factories there. Ghana's investment from car companies follows that of South Africa, which has attracted companies including Volkswagen, Renault, Nissan and Toyota to invest in factories in its territory through tax incentives.

Volkswagen said in a statement that it was aware that "although the African car market is still relatively small, sub-Saharan Africa is expected to become a growth point for the future car market."

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