Volkswagen signs MoU with Ethiopia, develop auto industry

Volkswagen has signed a Memorandum of Understanding with the government of Ethiopia to “collaborate and deliver a joint vision for the development of an automotive industry in the country”, including the possible establishment of a vehicle assembly facility.

Volkswagen will focus on four key pillars: the establishment of a
vehicle assembly facility, localization of automotive components,
introduction of mobility concepts such as app-based car sharing and ride
hailing as well as the opening of a training center. As such,
Volkswagen will work closely with the Ethiopian higher education and
training institutions for skills development and capacity building of
local talent.

Schaefer commented: “As one of the fastest growing
economies and with the second highest population in the continent,
Ethiopia is an ideal country to advance our Sub-Saharan Africa
development strategy. Additionally, Volkswagen intends on tapping into
existing expertise and strategic resources in Ethiopian to help to
establish a thriving automotive components industry.”

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Ethiopia
becomes the third country in Sub-Saharan Africa to sign a Memorandum of
Understanding with Volkswagen. It follows Ghana and Nigeria who both
signed MoUs with Volkswagen in August 2018. In Ghana, Volkswagen will
establish a vehicle assembly facility and conduct a feasibility study
for an integrated mobility solutions concept. In Nigeria, Volkswagen
implemented a phased approach of vehicle assembly with long term view of
establishing Nigeria as an automotive hub in West Africa.

Volkswagen
has been manufacturing vehicles in South Africa since 1951. In Africa,
Volkswagen also has vehicle assembly operations in Algeria, Kenya and
Rwanda.

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Under its TRANSFORM 2025+ brand strategy, Volkswagen is strengthening the regions and focusing on new up-and-coming markets. The Sub- Saharan Africa region plays an increasingly important role. Although the African automotive market is comparatively small today, the region has a bright look-out to develop into an automotive growth market of the future.

Source: VW Group

Source

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