VW prepares for planned regional vehicle market

Volkswagen production line at the Kenya Vehicles Manufactures (KVM), Thika, on December 21, 2016. PHOTO | DIANA NGILA | NMG

Automotive giant Volkswagen seems to be quietly plotting a takeover of the East African market, positioning itself for the lucrative saloon car business as the region moves towards integrating the sector.

In its latest move, last week, the Germany-headquartered automaker signed a memorandum of understanding with Ethiopia to establish an assembly plant in the country and produce automotive components.