Thomas Schaefer, the Chairman and Managing Director of Volkswagen, says the company is ready to produce two million made-in-Nigeria cars as soon as President Muhammadu Buhari gives assent to the automotive industry bill.

Schaefer made the statement in Abuja during an interview with newsmen as he led a delegation to discuss developing the African automotive industry by adopting an African approach.

“The market at the moment in Nigeria is not big due to various reasons, total number of cars built in Nigeria is about 10,000 cars which is small.

”Nigeria is good for, at least, 600,000 to 700,000 cars per annum.

”I personally believe that Nigeria is good for 2,000,000 cars per year; with good government policies and collaboration with the industry, this can be achieved, ” he said.

Schaefer said that used cars imported into the country were preventing any kind of industrialisation.

He said that Volkswagen would invest more than 100 million dollars in the first stage of its development project in Nigeria and provide more jobs.

According to him, Nigeria has been recognised as an important segment of the African automotive sector.

“We are also pushing for the passage into law of Nigeria’s automotive policy capable of advancing the growth of Africa’s automotive sector.’’

Schaefer advised the government not to allow Nigeria to become a dumping ground for used cars even if the vehicles are cheap.

Schaefer said that Volkswagen would ensure that 70 per cent of the raw materials used in its production were sourced locally.

”You need to localise the raw materials otherwise there will be no cost advantage.

”If you bring in all the materials, the logistics cost will kill the project.

“Nigeria has a lot of raw materials that can be used, ” Schaefer said.

Also, Mr Martyn Davies, Automotive Industry leader in Africa, said that the law would provide significant policy for foreign investors to help formalise operations in Nigeria.

Davies called for an effective management system for the country to boost the value chain.

”A country like Nigeria has a very hard decision to make because it is either the country continues to import second and third hand cheap substandard vehicles which is cheap and consumer-friendly or the country wants to create jobs,” he said.

The new National Automotive Industry Development Plan, also known as the Automotive Policy, was introduced in October 2013 to revive the ailing Nigerian auto industry.

The objective of the automotive policy is to restore assembly and develop local content, thus creating employment, acquiring technology and reducing pressure on the country’s balance of payment.

The bill has been passed by the National Assembly waiting for the president’s assent.


http://punchng.com/volkswagen-awaits-automotive-law-to-produce-2m-cars-in-nigeria-md/amp/

hmmm,

forget it... as long as its not a company that will be doing stud service for fulanis cows, buhari will never append his signature. Tell him you are bringing in a factory that will be donating Oyibo cow sperm to his own primitive cows, and he will append his signature and that of his whole family, happily.

on the surface it is good. but if you look dip, if the policy entails banning of importation of second motor vehicle, then you have to look at the cost and affordability of the new ones produced here. banning the second hand ones presently makes second hand vehicles expensive, and the ones produced here that are brand new will not be cheap either. so a middle ground has to be reached in this instance.

IBBG:
on the surface it is good. but if you look dip, if the policy entails banning of importation of second motor vehicle, then you have to look at the cost and affordability of the new ones produced here. banning the second hand ones presently makes second hand vehicles expensive, and the ones produced here that are brand new will not be cheap either. so a middle ground has to be reached in this instance.

You are so right. In the late '80s to early '90s, the car seats used for locally assembled Peugeot cars as well as the windshields, were sourced and supplied locally. Even the plastic bumpers and a few other items like rear lights and front lights, were made by local manufacturers. Unfortunately, things changed in the industrial sector, and the companies supplying these items folded up, because for several years after, Peugeot started importing fully built up vehicles, instead of assembling their cars locally. It was just a few years back, that they started local assembly operations, again.

If serious efforts are made to source at least 70% of the parts locally, then maybe cost of brand new units would drop significantly.

Yet Procter and gamble is closing down it's Mega plantbin Nigeria...who is fooling who

Let's just hope this will not be another P&G story.
2M cars if deal goes well. Hmmm! Nigeria will be Great Again.

LaudableXX:


You are so right. In the late '80s to early '90s, the car seats used for locally assembled Peugeot cars as well as the windshields, were sourced and supplied locally. Even the plastic bumpers and a few other items like rear lights and front lights, were made by local manufacturers. Unfortunately, things changed in the industrial sector, and the companies supplying these items folded up, because for several years after, Peugeot started importing fully built up vehicles, instead of assembling their cars locally. It was just a few years back, that they started local assembly operations, again.

If serious efforts are made to source at least 70% of the parts locally, then maybe cost of brand new units would drop significantly.

the problem we have in this country is lack of will to enforce policies. Each successive government that comes in abandons the blue prints of previous govt, thereby robbing the economy sustainable growth

Well anything that will make the economy good is a welcome development for me..









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