VW plant closure prevented by scrappage incentive
It's quite amazing to think that the demand for a vehicle in one country, brought about by a tax incentive, can have such a specific and crucial impact on the lives and jobs of employees in a car factory half a world away.
But with Germany's scrappage incentive driving sales of the Volkswagen Polo through the roof, the brand's South African plant has now managed to avoid the temporary closure it was certain to face next month in order to keep up with the unprecedented demand.
Volkswagen's Uitenhage factory in South Africa was supposed to have stopped production in the weeks before and after Easter, but plans changed when VW's order books in Germany started to fill. The plant will now produce 6,000 additional Polos to meet with demand - most of which are to be exported to Germany.
The scrappage incentive provides German customers the equivalent of $4,905 AUD if they trade in a car that is at least nine years old for a new, more fuel-efficient model. The scheme has seen new car sales in Germany rise by 21.5 percent in February.
The price for a basic three-door Polo in Germny would be the equivalent of $23,840 AUD.
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