Volkswagen of South Africa has announced the arrival in 2006 of a range of medium and heavy commercial vehicles, a move that could considerably change the local trucking landscape writes FleetWatch's Paul Collings.

Several issues of FleetWatch ago, our WorldWatch correspondent Frank Beeton predicted that Volkswagen trucks would, in the not too distant future, be sold in South Africa. His foresight was based on the success the VW brand has experienced in the Brazilian MCV and HCV markets and the similarities the two countries share, both environmentally and socio-economically.

Lo and behold, hot on the heels of exceptional 2004 new truck sales figures, the official announcement of the establishment of the Volkswagen of South Africa Truck and Bus Division has been made. 

According to Andreas Tostmann, MD of Volkswagen SA, the commercial vehicle production facility will be established alongside the existing Volkswagen plant in Uitenhage but will have a totally separate dealer and support network. 

Tostmann says that VW will offer rigid trucks in various wheelbases with 9 to 26 ton GVM in 4x2, 6x2 and 6x4 configurations. There will be three engine models from Cummins, International and MWM. These configurations are popular in Brazil - where the company has a 32% truck market share - as well as in parts of Africa and the Middle East.

"We will also offer right hand drive truck tractors from 18 to 26 GVM in 4x2, 6x2 and 6x4 configurations," says Tostmann.

All the trucks will meet Euro 3 emission level standards but will be no-nonsense, robust and cost-effective workhorses designed to meet the stringent driving conditions of the local transport environment.

And how's this for a bullish view: "We are projecting to sell an average of 800 trucks per annum and achieve between 8 and 10 per cent market share initially, with excellent growth potential," says Tostmann.

Volkswagen of South Africa Truck and Bus Division will be supported by 13 sales dealerships nationwide and 9 service-only workshops with 24-hour mobile service crews.

"These specialist dealers are currently in existence selling our light and medium commercial range of Panel Vans and will provide new separate premises to service this specialist market. It is worth noting that these dealers will all be at least 25,1 per cent black owned," explains Tostmann.

Volkswagen's investment in the set-up of its new commercial vehicle infrastructure will total R300-million and result in the creation of 400 new jobs in the manufacturing plant and the dealer network. Tostmann says the local truck body/trailer industry will also benefit from the sale of the new vehicles. Furthermore, the introduction of the truck and bus range will make South Africa the only market globally to sell the complete Volkswagen commercial range i.e. from the half ton new Caddy Panel Van to the Titan 6x4 truck tractor.

Tostmann says the South African Truck and Bus Division will provide a platform for potential Volkswagen Truck exports to right-hand drive countries in Africa as well as South East Asia.

On the state of trucking in South Africa, Tostmann is bullish. "Business confidence is at an all time high and 2004 truck sales indicate a strong demand for new vehicles. We will price the vehicles competitively and set ourselves a two-year time-span to achieve our projected market share."

As mentioned, FleetWatch anticipated this development and sees it as a most interesting one. More jobs and broader customer choice are good for our economy - although some might disagree with the 'broader choice' bit - and the footprint and reputation VW already has in South Africa should see the new division attracting significant interest from fleet owners and privateers. The addition of the VW marque to the medium and heavy commercial vehicle arena will certainly add spice to the industry at large.

To Volkswagen of SA FleetWatch says: "Welcome to the wonderful world of trucking and best of luck with your new venture. Well no, not Venture - that's a Toyota product. Best of luck with your new trucks.