of customisation and configurability. Something emerging Chinese luxury brands could leverage to their advantage, exactly as VW ' s luxury brands cut costs on options and configuration options.
Global dominance done?
In an industry where growth creates the scale that unlocks supply chain discounts and enables profits, VW is strangely planning to become a much smaller global automaker in the future.
In 2019, VW produced 11 million cars and was the world ' s largest automaker. Now it projects total global production capacity and sales of only 9 million vehicles. That ' s dramatically lower, and the true efficiency comparison with Toyota is unbelievable: the Japanese automotive giant builds more cars, more profitably, with a much smaller workforce of fewer than 400,000.
As Germany ' s biggest company, VW ' s trading health has a symbolic and tangible influence on Europe ' s most important economy. Reduced production capacity and job losses will dramatically affect established component suppliers and Mittelstand global champions, those small family-run companies which have been the secret to Germany ' s industrial success.
As a barometer of Germany ' s economy, VW ' s managing the greatest crisis in its history is telling of broader issues and risks corroding the once-imperious German auto industry.
Kariega ' s future
How will the 100,000 job cuts impact VW ' s South African operations? With the most expensive labour, half of the 100,000 job losses are expected in Germany, where VW is desperate to save money. The remaining 50,000 job cuts will be in global regions outside Germany. The biggest losers in VW ' s crisis-response restructuring are the Spaniards, with the Seat brand set to be discontinued.
The VW factory in Kariega will brace for changes, too, as VW ironically marks 75 years of vehicle production in South Africa. VW Africa has announced a CEO change, with current CEO Martina Biene moving to Skoda to head its sales and marketing. With deep experience and understanding of the South African market and domestic economic dynamics, Biene was seen as an ally to the interests and community value of continued VW operations in Kariega.
The new VW Africa CEO is Christiane Zorn, who is moving into VW ' s most important African role, having previously served as Porsche ' s Overseas Region Vice President. Zorn has extensive automotive experience, starting at Boston Consulting Group, followed by a stint at BMW, before joining Germany ' s largest automaker through its Porsche luxury brand.
With VW ' s Kariega plant having secured its third model line, with an industrial engineering investment of R4 billion to start up Tengo production, the brand ' s immediate production future in South Africa seems secure. For now.
JULY OCTOBER | AUGUST 2026 2026 13 WORDS IN ACTION