German carmaker Volkswagen plans to spend 4.5 billion rand ($343 million) to upgrade its factory in South Africa and improve its supplier base, it said on Thursday.
Most of the money would be used to revamp its factory in Uitenhage in Eastern Cape province to produce new models, Thomas Schaefer, head of Volkswagen's South African unit, said.
VW has been pushing for greater scale under Chief Executive Martin Winterkorn's eight-year reign, propelled by adding brands and factories and roaring sales in China.
VW is the second-biggest auto maker by sales in South Africa after Toyota. Its vehicles are sold domestically as well as exported to the rest of Africa.
Other manufacturers in the country include Ford Motor Co., BMW and General Motors.