Kenya Motor Vehicle In Thika rolls out its first assembled VW cars at its plant

Motoring
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Remember this deal being signed at State House after successful lobbying by CS Mohammed
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VW Polo Vivo will be assembled in Thika starting this December

By VICTOR JUMA

Posted Wednesday, September 7 2016 at 16:42
IN SUMMARY
[ul]
[li]The Volkswagen South Africa CEO Thomas Schafer said the company was attracted by Kenya’s potential to export vehicles to the wider East Africa region.[/li][li]The company used to operate in Kenya in the 1960s until 1977 and used to assemble Volkswagen vans, microbuses and the famous Kombi.[/li][/ul]
Motor dealer DT Dobie is set to start assembling Volkswagen (VW) vehicles including saloon cars and light trucks at the Thika-based Kenya Vehicle Manufacturers plant. The company, which took over the VW franchise from CMC Holdings, has been importing the German vehicles fully built from markets like South Africa. Volkswagen South Africa CEO Thomas Schafer said the German multinational will later this year start assembling some of its models at KVM, having stopped local assembly in the 1970s.

“We were in Kenya in the 1960s and 70’s and resuming operations here is part of our Africa strategy,” Mr Schafer said in a statement. “The Volkswagen Group is excited to be here and we will start operations immediately.” Mr Schafer signed an agreement with President Uhuru Kenyatta to launch VW’s local assembly at KVM where the government has a 35 per cent stake.

DT Dobie is a 32.5 per cent shareholder of the Thika assembly plant while CMC Holdings’ stake stands at 32.5 per cent. Among the VW models to be assembled are light trucks and Vivo, a passenger car which will be the first to be put together locally. “I am happy to welcome back the Volkswagen Group, currently the largest car manufacturer in the world, back to Kenya,” Mr Kenyatta said in a statement. The German automaker used to operate in Kenya until 1977.

20 per cent excise tax

It used to assemble Volkswagen vans, microbuses and the famous Kombi. Local assembly is largely boosted by the exemption of vehicle parts headed for assembly plants from the 25 per cent import duty levied on fully-built cars, resulting in a price advantage.

http://www.businessdailyafrica.com/…ars-in-Kenya/539550-3372756-hm7tsm/index.html

Well here they are right on schedule, cheaper than importing them, spares available locally and after sales service.
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Lastly let me quote @shocks
“Its the first step on that road to car manufacturing, second step is they start acquiring some non-essential bits locally e.g upholstery, plastic fittings and the works. Third step is they start fabricating the body and other simple things, follow that route and finally engine parts and transmission system will be done here.
Our new car market is so small, a complete car manufacturer setting up shop wouldn’t make sense because the no. of units they would produce would not enjoy economies of scale.”

Can i get some claps for Jubilee Development. Goodnight.

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Lazima niendeshe nijue iko sawa,if it can’t overheat like the coming SGR train, then I’ll be happy :D:D .Anyway I’m happy when I see good stuff happening to my country .BTW how much will the car cost ?

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…in my eyes you are…

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Deep scrutiny about the real owners of KVM is Kenyatta’s family. Remember that when UK was the finance minister he lobbied for passat to be used in the government circles. It was not a surprise though sugar coated to look like CS Mohamed struck the deal.

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Ukiskia bei inbox me, meanwhile this is good news if at all it will go to the longterm and create jobs and opportunities for the youth

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I hope this @spear guy will answer me back. He told me that when the trains come i shouldn’t apply for locomotive driver …:D:D:D:D:D

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Kwanini hataki uendeshe train? Ama uko addicted to nduthi huezi hack train:D:eek:

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:D:D:Dcoz i over criticize him

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That was directed to me for saying nitaidunga free all the way down from Nairobi to msa

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I thought that was directed to Meria not you

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Watatengeneza touaregs? Not that i can afford one?

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Pesa ngapi?

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Hii ndio ubaya ya watu kujiingiza ya conversation si yao, uelewi nini inasemwa then mtu ana develop feelings.

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Hehehe…

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mbona hamsemi ni pesa ngapi??? and yet you claim it is cheaper than importing…what gives?

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KVM hasn’t yet set the price so i can’t do it for them but buying local will definitely be cheaper since you wouldn’t pay excise duty and remember its a new car.

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Since its an elections cycle such useless comments always crop up. Whether its owned by the Kenyatta family (which i doubt because it’s run by asians/Indians) or not, this is a private venture without any public funds involvement. Secondly when President Uhuru was finance minister and he effected the change from expensive Mercedes to middle class luxury Passat, that franchise was with CMC motors not KVM. So your argument on the second point is incorrect as well. Lastly you can’t take away credit form someone just because it doesn’t fit into your narrative. CS Mohammed had for a year pushed for this deal including flying to VW hq in Germany and VW S.A to make it happen with KVM directors. The end result is more jobs for Kenyan’s, more taxes for government and the country gains for the trade exports when we export our VW’s regionally.

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Kenya being Kenya and its stupid markups that car will Probably be 100k less than importing one - meaning no real difference.
I bet on this!

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YOM my friend YOM

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Sinanga MA feelings kwa keyboards baba. MA feelings mimi hudevelop kwa real life ama the most feelings I develop is when I read a story of how we are degrading our environment recklessly… i just wanted your attention that’s it :D:D