SA’s German commercial vehicle giant revealed

Following MAN SE’s 100% buy-out of Volkswagen AG’s Brazil based Truck & Bus operation in December 2008, MAN Truck & Bus Africa and Volkswagen South Africa have announced plans on how the companies’ local Truck & Bus operations will be integrated.

Since April 2009 MAN Truck & Bus Africa and Volkswagen South Africa have been in discussions over the integration of their local Truck & Bus operations. “We have been working hard to finalise plans for the seamless integration of all operational, assembly, distribution and support aspects of the two businesses,” says Thomas Hemmerich, CEO at MAN Truck & Bus Africa.

The local integrated Truck & Bus business will be operated from the MAN head offices in Isando, Johannesburg, headed by Hemmerich, and supported by an integrated management team. The Dealer network will be dual branded, which is due for completion by the third quarter of 2009 and will offer sales and after sales support for all MAN and Volkswagen Truck & Bus products.

“Customers can rest assured that any changes to the product mix will not affect the after sales support and parts availability of the vehicles they currently own,” continues Hemmerich. “There will also be a thorough skills transfer to ensure all vehicles can be serviced at all of the new locations and all warranties will also be honoured. We have also been in discussions over the Volkswagen Truck & Bus production facility in Uitenhage, with the intention of transferring the facilities from Uitenhage to MAN’s Pinetown facility,” says Hemmerich. The Volkswagen Truck & Bus parts distribution will be incorporated into the MAN parts division to centralise the operation.

Mike Glendinning, Director of Sales and Marketing at Volkswagen South Africa, says: “We want to assure all our current and prospective commercial vehicle customers that it will be business as usual. The integration of our Truck & Bus business into MAN Truck & Bus Africa is a logical structural change, which will not impact or disrupt operations of the two brands. We see this as a very positive association and are confident that both brands will continue to grow and benefit from this integration.”

Hemmerich echoes this sentiment and is very confident that this integration will greatly benefit both businesses. “It will substantially increase reach and market share through an extended sales network and product range,” says Hemmerich. “It also gives MAN access to the emerging market of Latin America and ensures that Volkswagen’s Truck & Bus brand enhance their footprint in the rest of Africa. So it is definitely a mutually beneficial deal,” he concludes.

This integration process does not include Volkswagen’s range of light and medium commercial vehicles which will continue to be marketed and retailed through its existing Commercial Vehicles Dealership network, which includes locations in South Africa, Namibia and Botswana.