Corporate Citizenship
Community Development
Preferential Procurement and Purchasing
Volkswagen of South Africa supports equality of opportunity and the continued development of our people, suppliers and Dealers to achieve globally competitive standards in quality, service and delivery. Corporate targets have been established for our Broad-Based Black Economic Empowerment Programme.
Proof of the effectiveness of Volkswagen of South Africa’s programmes is that the company spent R2 billion with BBBEE suppliers in 2007. Volkswagen of South Africa continues to participate in Joint German OEM Supplier Council activities, and negotiations with the Department of Trade and Industries (DTI) together with NAAMSA on the development of strategies and objectives.
Volkswagen of South Africa, as part of the multi-national business community, will continue to support BBBEE as a strategic initiative both nationally and in the local environment. Some other initiatives include:
- Identification of potential BBBEE suppliers
- Providing coaching and assistance to BBBEE suppliers
- Development of the current BBBEE supplier base
- Encourage non-compliant suppliers to acquire a minimum of level 4 status
- Introduce non-compliant companies to potential BBBEE partners
Mzantsi Truck and Bus
Volkswagen of South Africa announced its partnership with Mzantsi Truck and Bus in January 2006. Mzantsi is a black owned company which was started by a group of Volkswagen employees who used funds from an investment initiative to pursue this business opportunity with Volkswagen.
Mzantsi Truck and Bus tendered for the production of Volkswagen’s Heavy Commercial vehicles in August 2005. Three months later, Volkswagen of South Africa announced that Mzantsi Truck and Bus had beaten nine competitors in the race to become the vehicle assembly, maintenance and warehouse management partners of Volkswagen. Mzantsi has to date employed more than 20 new recruits, mainly from an automotive school of excellence, the Uitenhage Despatch Development Initiative (see below) training centre.
BBBEE Franchised Dealerships
Volkswagen of South Africa is promoting black economic empowerment throughout its Dealer network.
Volkswagen of South Africa is actively supporting BBBEE Dealerships by channelling government and parastatal business through them. An early success is that all of Volkswagen of South Africa’s 13 new Commercial Vehicles Dealerships meet BBBEE requirements.
Public Private Partnerships
Uitenhage Despatch Development Initiative
In March 2001, Volkswagen of South Africa, the Nelson Mandela Metro and the Eastern Cape Provincial Government, through the Eastern Cape Development Corporation (ECDC), established the Uitenhage Despatch Development Initiative (UDDI). The UDDI is an ambitious plan to upgrade the Uitenhage area to increase employment and create a world-class centre for both citizens and industry. This initiative was modelled on Volkswagen AG’s ‘Auto Vision’, a project set up with the Federal State of Lower Saxony and the Town Council of Wolfsburg to reduce unemployment.
The UDDI is now registered as a Section 21 company and has a full time project director, a small team of project managers and an office in Uitenhage. It has already resulted in the creation of over 3 000 new jobs in the Uitenhage area.
Volkswagen Community Trust
Volkswagen has a long history of community involvement and investment in local communities through Volkswagen Community Trust. Established in 1987, the Trust addresses key socio-economic factors within Volkswagen’s surrounding community, focusing specifically on education, youth development and job creation. The company spends around R16 million each year on uplifting the community through different projects. Volkswagen is committed to investing more than R400 million in training and skills development by 2010.
The Trust’s bursary programme is a priority investment area. Approximately 500 bursary recipients over the past five years have been studying towards qualifications in key skills demand areas such as Engineering, Finance, Commerce, Computer Studies, Science, Technology and Business Studies. More than 50 percent of these recipients are Black females.
Other Public Private Partnership initiatives include:
- Agriculture and Agri-Tourism
- Manufacturing/Clothing Production
- Services within the taxi industry
- Business Against Crime
Working with the Community
As an integral member of its community Volkswagen of South Africa works with a wide range of local organisations to help raise the next generation of South Africans. The Volkswagen Community Trust has partnered with the following organisations to bring upliftment to the community:
- Betheli Christian Centre
- Edward Cook Feeding
- Sophamakama Community Based Development
- Khanya Development Foundation
- New Life Pregnancy Crisis Centre
- Masibambane African Action Group
- Jerusalem Ministries
Volkswagen of South Africa has also taken ’ownership’ of two cottages in two different children’s homes, namely SOS Children’s Village and Oosterland Youth.
