Volkswagen, Walkinshaw mull overseas assembly

A BUSINESS case is under consideration for Volkswagen’s renewed high-performance pick-up collaboration with Walkinshaw Automotive Group (WAG) to expand overseas, beyond Australian subassembly facilities, for the first time.

News of the proposal coincides with confirmation of the reboot of the successful Amarok W-Series ute line, which will see Silverton, South Africa-assembled second-generation Amaroks rebuilt at WAG’s new 100,000 square metre manufacturing facility in Dandenong, Victoria.

Set to be inaugurated in late 2025, the new WAG Dandenong plant will house various sub-assembly and conversion programs, while headcount at the Australian special vehicle development specialist is expected to grow from 1000 to 1250, WAG director Ryan Walkinshaw told GoAuto.

WAG has substantially grown its specialist ute conversion and subassembly operation from the successful HSV SportsCat program in 2019, with programs now taking in the Toyota Tundra, Chevrolet Silverado, RAM 1500, and Isuzu D-Max Blade – and now the renewed Volkswagen partnership.

“The full focus at WAG, with Volkswagen, is to ensure that we deliver a great product, manufactured locally with Australian hands,” said Mr Walkinshaw.

But GoAuto can reveal that Volkswagen and WAG are considering expanding their partnership to countenance overseas subassembly, unlocking the possibility of foreign markets (in particular South Africa and Europe) receiving Amarok Walkinshaw variants for the first time.

The global chief executive of Volkswagen Group Commercial Vehicles (VAG-CV), Carsten Intra, attended today’s Sydney media briefing that culminated with the reveal of a rendering of the inaugural next-generation Amarok Walkinshaw variant.

“We have discussed that (overseas subassembly) could be a possibility,” Mr Intra told GoAuto.

“There has to be a business case. We have discussed what we could do, and where we could do (it).

“If we want to bring it to, for example, South Africa or Europe, we would (currently) have to (import) the car to Australia and then (ship it) back to Europe.

“There are a lot of logistics. If you really want to bring a Walkinshaw … you have to build something up somewhere (else). It is a discussion with Walkinshaw about whether they are ready to do something like that.”

While the initial Amarok Walkinshaw program of 2020-2022 arrived very late in the Volkswagen-sourced, first-gen ute’s 11-year production run, the 2026 start of production of the renewed hi-po pick-up commences far earlier in the model’s life, expanding the possibilities for additional variants – and markets.

“We are in permanent talks with (WAG),” added Mr Intra.

“We have just launched the (second-gen) Amarok, so it will be in the market for some time. 

“There could be follow-up projects as well. It could be somewhere in the world, or it could be here. But yes, we are talking.”

The VAG-CV chief executive revealed that the day before the reveal of the second-generation Amarok Walkinshaw, he had been engaged in a brainstorming session with WAG leadership.

Volkswagen sources the current-generation Amarok exclusively from a Ford-owned factory near Pretoria in Silverton, South Africa.

Sub-assembling the Walkinshaw variants at a South African facility (rather than in Australia) could mean that finished W-Series variants could be sold in South Africa, or loaded onto boats headed for Europe, the United Kingdom, or elsewhere.

Asked whether WAG was considering opening a facility proximate to Pretoria, Mr Walkinshaw chuckled: “There have been some discussions about that, if I am not being too forward. There are always opportunities in doing that, but at the same time, you have to make sure the program makes sense in other markets”.

“There is obviously risk, as well, setting up a manufacturing plant in another country where we do not have expertise. If it makes sense, we are always open to those sorts of opportunities,” he added.

Mr Walkinshaw was clear that if a South African (or other overseas) WAG facility came to fruition, it would not necessarily mean that Australian sub-assembly would end, ruling out WAG moving offshore but leaving open the possibility of expanding overseas.

“There is only so much I can say (but) we would not move, necessarily, offshore, but where it makes sense, we are always open to making (vehicle) programs more efficient by setting up abroad if that makes sense for the manufacturer and (if) they ask us to do that,” he said.

Such a development for WAG would have parallels to a recent progression in a similar partnership between Nissan and rival Australian vehicle development firm Premcar, a collaboration that resulted in the locally co-developed Nissan Navara Warrior line of fettled utes.

Australian-delivered Navara Warriors are built in Thailand and sub-assembled at Premcar’s Epping, Victoria facility.

However, the partnership has commenced secondary assembly of the Navara Pro-4X Warrior grade in a new facility housed within the Nissan factory at Rosslyn, South Africa, which supplies Navaras to the South African market.

By contrast, Ford’s Silverton Assembly Plant has become considerably busier in recent years, with the factory building all second-generation Volkswagen Amaroks and all Europe-destined Ford Rangers (bar the Raptor), but also the high-voltage battery packs utilised by the forthcoming Ford Ranger PHEV.