The Volkswagen South Africa CEO Thomas Schafer said the company was attracted by Kenya’s potential to export vehicles to the wider East Africa region.

The company used to operate in Kenya in the 1960s until 1977 and used to assemble Volkswagen vans, microbuses and the famous Kombi.

Remember this deal being signed at State House after successful lobbying by CS MohammedVW Polo Vivo will be assembled in Thika starting this DecemberBy VICTOR JUMAPosted Wednesday, September 7 2016 at 16:42IN SUMMARYMotor dealer DT Dobie is set to start assembling Volkswagen (VW) vehicles including saloon cars and light trucks at the Thika-based Kenya Vehicle Manufacturers plant. The company, which took over the VW franchise from CMC Holdings, has been importing the German vehicles fully built from markets like South Africa. Volkswagen South Africa CEO Thomas Schafer said the German multinational will later this year start assembling some of its models at KVM, having stopped local assembly in the 1970s.“We were in Kenya in the 1960s and 70’s and resuming operations here is part of our Africa strategy,” Mr Schafer said in a statement. “The Volkswagen Group is excited to be here and we will start operations immediately.” Mr Schafer signed an agreement with President Uhuru Kenyatta to launch VW’s local assembly at KVM where the government has a 35 per cent stake.DT Dobie is a 32.5 per cent shareholder of the Thika assembly plant while CMC Holdings’ stake stands at 32.5 per cent. Among the VW models to be assembled are light trucks and Vivo, a passenger car which will be the first to be put together locally. “I am happy to welcome back the Volkswagen Group, currently the largest car manufacturer in the world, back to Kenya,” Mr Kenyatta said in a statement. The German automaker used to operate in Kenya until 1977.It used to assemble Volkswagen vans, microbuses and the famous Kombi. Local assembly is largely boosted by the exemption of vehicle parts headed for assembly plants from the 25 per cent import duty levied on fully-built cars, resulting in a price advantage.Well here they are right on schedule, cheaper than importing them, spares available locally and after sales service.Lastly let me quote @shocks "Its the first step on that road to car manufacturing, second step is they start acquiring some non-essential bits locally e.g upholstery, plastic fittings and the works. Third step is they start fabricating the body and other simple things, follow that route and finally engine parts and transmission system will be done here.Our new car market is so small, a complete car manufacturer setting up shop wouldn't make sense because the no. of units they would produce would not enjoy economies of scale."Can i get some claps for Jubilee Development. Goodnight.