Volkswagen plans to double output from Kenya plant, Kenyan presidency says

Reuters

NAIROBI (Reuters) - German automaker Volkswagen (VW) <VOWG_p.DE> plans to double output at its Kenyan assembly plant and could build a second model there, Kenya's presidential office said without giving a timeline.

VW set up the vehicle assembly plant in 2016, resuming production in Kenya after a four decade break. The plant has started by assembling VW's Vivo model.

President Uhuru Kenyatta was told by VW's South Africa chief Thomas Schaefer "the firm was exploring producing a second model in Kenya, possibly a hatchback - small SUV - while doubling production of the VW Polo Vivo to at least 300 vehicles," the presidential office said in a statement late on Friday.

VW has long experience operating in emerging markets. But Kenya's car market is dominated by low-priced, second-hand imports from countries, such as Japan.

Other brands assembling vehicles in Kenya include Isuzu <7202.T>, Toyota <7203.T>, Nissan <7201.T>, Mitsubishi <8058.T> and Peugeot <PEUP.PA>.




(Reporting by George Obulutsa; Editing by Edmund Blair)