sonnie10:

Oga @Fhemmmy, but what is the work of govt. agencies like SON, it is not for quality assurance? Again if they are going to export from Nigeria, how would they influence the QC/QA bodies in the other countries. They can break even with Nigeria market alone.

Fhemmmy:

Go and compare side by side the Toyota Cars made in South Africa with same model made in USA and Canada, and you will agree with me that in Nigeria, anything, i mean anything goes . . .

ikenga67:

How do those compare in terms of safety...airbags and stuff like that?

Fhemmmy:

Yes, Sir . . . Imagine a brand new Kia car with not even a single Airbag

sonnie10: May be more freebies, like tax exemption and the final cost of production would very low. But isn't that a big chunk of our total GDP going to these foreign companies who may not even reinvest in the country?

ikenga67:

Am surprised that even Kia can do that. But I tell you that there is no way Toyota would put their name to any vehicle anywhere in the world without airbags. The reputational risk alone is just too high and you can be sure that the maybe $1b Nigerian market would definitely not entice them

mic foley: The increased tariff is also likely to open the market for Innosons
who will increase his capacity and probably go into Sedan/Saloon production.

Fhemmmy:

Cost of production in terms of Labor but to assure the safety of the employees, transportation of finished goods from one location to another (bad roads) cost of keeping the plant open and operational cos of the cost of Diesel and generating plant . . . .I am not sure the cost of production will be that low

BizBooks:

This is a recurring theme in this whole saga. As you can see, everybody that
supports this policy keeps using the future tense: will. For instance, we keep
hearing:

- Nissan will build a plant in Nigeria
- Brand new cars will sell for N1.5M
- Innosons will start building saloon cars
- This policy will create thousands of jobs

Everything is will, will, will. There is no evidence that any of them will come true.
In fact the opposite is most likely.

ikenga67:

I agree with you. I do not know why people keep thinking that the cost of production will be significantly cheaper in Nigeria. The cost of doing business is just way too high in Nigeria. Labor is not the only thing that go to manufacturing costs

ikenga67:

Am surprised that even Kia can do that. But I tell you that there is no way Toyota would put their name to any vehicle anywhere in the world without airbags. The reputational risk alone is just too high and you can be sure that the maybe $1b Nigerian market would definitely not entice them

Fhemmmy:

How many airbags do we have in Corolla in Western world? The ones in Nigeria, brand new from SA only has 2 . . Driver side and passenger side at the front.... So dont be too sure that Toyota wont do it.

sonnie10:

I wish you had seen how a full grown man, Toyota CEO was crying in front of US senate during the Prius fast and fury issue. It all about reputation my brother.

Fhemmmy:

They are yet to build one car by Nissan and already by this month new policy
is taking effect . . . I hail our govt.

ikenga67:

You can trust me, they will not do that...the reputational and legal risk is just too much.
Take for example, I am a US citizen on a trip to Nigeria and I get seriously injured in a car accident involving one of those your poor quality Toyota or Nissan. Do you think I will pursue them in Nigeria? Of course not. Do you think I might have some colorable basis to sue them in the USA? You do not know US law if you do not believe I can. Trust me, those Auto giants are not going to do away with their minimum standards just so that they can make $7k cars in Nigeria.

adconline:
How can US consumer protection laws protect Naija folks in Naija? How come BP paid billions of $ for oil spillage in the US while same oil companies don't give a fkcuk in Naija.

ikenga67:

But they do have airbags. Maybe the two front airbags is what is the minimum industry acceptable standard. Now maybe for reasons of competition or the requirement of the US governemt (or maybe even State of California which usually have higher standards) they could put more airbags for cars made for the US market. Now if they take out ALL the airbags for any vehicle made for ANY market, you must agree with me that is cynical and the global giants are averse to such risks especially if the market is not a big one

Fhemmmy:

So minimum is good enough, we are in year 2014 and most car producers won't compromise on safety, head injury is one of the kost horrific injuries and in a nation where no good roads nor health care system, hope curtain airbag wont be compromised.?.. not saying is a must but will b great to ave.

ikenga67:

I did not say that is good enough. I was just saying two front airbags is probably the minimum that Toyota etc can not go below even if they are manufacuring in "anything goes" Nigeria. My point is that multinationals are answerable to other governements and publics outside the particular country they are doing particular biz in.

malmo: This uncertainty has stopped me from ordering vehicles from US for now.If it is implemented, it will only create rooms for smuggling thru the nation borders.

Shine u Eye: solokon111 is the only one making sense here. Every country on earth protects its local manufacturers. Since the 70s Nigerians have always believed time is not right to take drastic measures to help our manufacturers. When will the time ever be right?
Progress comes at a prize and no pain no gain. If we want to join the "brics" countries, measures like these needs to be put in place. Come on, every Nigerian cleaner/labourer abroad dreams of sending a beat down toyota to make quick bucks at the expence of locally produced ones.

ikenga67: From a legal point of view, I even have serious doubt if this so-called policy can pass constitutional muster.
Here we have a policy that will have major impact on both the economy and the revenue of the Federal Governemnt, not to talk of having disruptive effect on industry. The NASS should be responsible for inititating such policies through duly passed legislation. Of course in the modern system the legislature can delegate some of its functions to the executive and other agencies, but the legislature ought to have in place a mechanism for overseeing the delegatee of such powers. I doubt if any of that has been put in place here, but again, this is Nigeria!!!

ogbronx: Naija is a different place altogether. There is no policy that would work in a corrupt country like nigeria.

txswat:

I asked this very question about 2 pages back. Are there any lawyers on the forum who can confirm if the executive branch can pass and implement a policy like this without going through the two chambers of congress? I'm not a lawyer but this seems unconstitutional to me.