Volkswagen South Africa has been awarded an export contract for up to 300 000 cars, the Herald Online reported today. Right-hand-drive Polos, being built at the companies Port Elizabeth plant, will go to leading markets worldwide in a deal seen as a huge boost for the Eastern Cape and the country's motor industry.

VWSA managing director David Powels was quoted as saying that 19 000 of the new Polos still to be launched on the domestic market would be exported by year-end. This would be followed by 55 000 a year from next year, a doubling in exports. And 77% of the 70% local content of the vehicles would be labeled "made in Mandela Bay", The Herald said.

The Polo export contract, with an estimated value of R30 billion according to industry observers, was for the duration of the new model's life, likely to be six to seven years. Powels told The Herald that no immediate jobs would result directly from the export programme. However, with the 55 000 exports and a 10% increase in production for the domestic market planned for next year, further jobs could be created. Total production was scheduled to reach 90 000 units next year.

The export contract had safeguarded jobs that had possibly been in jeopardy because of the plummeting domestic market. Countries to which the vehicles would be exported included Britain, Ireland, Australia, New Zealand, Malaysia and Singapore.

Powels said the new Polo would be launched in South Africa early next year, but production had been under way since July. - Sapa