Volkswagen to Spend $20 Million to Launch App-Based Mobility Services in Rwanda
January 18 2018 - 9:34AM
Dow Jones News
By Marc Navarro Gonzalez
Volkswagen AG (VOW.XE) said Thursday that it is spending around
20 million dollars to enter the app-based mobility market in
Rwanda.
The German car maker said it will start providing mobility
services, such as car-sharing and ride-hailing, in the country
through a new company called Volkswagen Mobility Solutions
Rwanda.
Volkswagen said it plans to start a car-sharing service in
capital Kigali in the spring, with a ride-hailing app and further
services to launch later in the year.
Volkswagen said the fleet for the new services will be produced
in a new vehicle-assembly facility in Kigali. Production will start
with several hundred cars in mid-2018, but capacity will gradually
be expanded to up to 5,000 vehicles a year, it added.
Overall, Volkswagen and its partner companies will create up to
1,000 jobs in Rwanda, the auto maker said.
Volkswagen said it also plans to expand in to other countries in
the Sub-Saharan region.
"In a second step, we hope to put the valuable experience gained
with ride hailing here in Rwanda to use in other markets where the
Volkswagen brand has a presence," said Thomas Schaefer, chairman of
Volkswagen Group South Africa.
Write to Marc Navarro Gonzalez at
marc.navarrogonzalez@dowjones.com
(END) Dow Jones Newswires
January 18, 2018 10:19 ET (15:19 GMT)
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