VW to Double Production in Kenya

Volkswagen AG says it intends to double output at its factory in Thika, Kenya, and may add a second model there.

VW opened the small factory, which currently assembles the popular Polo Vivo five-door mini-hatchback, in 2016 after exiting the market four decades earlier. Last year the facility made about 150 Vivos from imported kits.

The expansion will double Vivo capacity and also could accommodate production of a small crossover, according to the Kenya’s presidential office.

The country’s local market consists mainly of imported used cars. But several carmakers are establishing local assembly operations to test demand for locally produced new vehicles. PSA group partnered last February with a local distributor to assemble Peugeot cars and crossovers from kits.

At about the same time, Isuzu Motors Ltd. agreed to take control of General Motors Co. operations in the country. The GM unit imports Chevrolet-brand vehicles and locally assembles light-duty Isuzu brand trucks.​​