Ghost447:
Have you ever check a complete engine of other brand of cars? All the parts are not usually manufactured in one country. Even televisions, some of the parts are manufactured in another country. My phone is made in Hungary, while the earphones is made in Indonesia.

It's called sarcasm

Quakertellicus1:


The body is imported from abroad...as is the engine.

Fact is...we cannot make the body in Nigeria....because we do not have Ajaokuta working.

And you cannot have a good car manufacturing system in Nigeria if you are not making the engines in Nigeria.

My name is not Afonja...and this news means that APC should fix Ajaokuta, invest in power and do all they can to make sure Nigeria is designing and making engines at home.(So...i am also shouting at APC. Criticism means offering your ideas about what needs to be done)

Because...you cannot keep on importing engines for the cars you make WHEN your source of forex is very very poor.

Therein lies the problem.

Stop misinforming yourself. Powertrain is the most difficult and complex system to build. Chinese and Indian auto manufacturers are still using engines built by Japan and US today. What an arrogantly sophisticated prick!!

Nnewi is now in southern Nigeria arbi? All this una propaganda sef.

Quakertellicus1:


And most of them do that when they become big enough to do that...and when they are earning enough profits to do so.

All successful car manufacturers start off as local champions....growing via production of cars with high local content..before expanding out of their country.(eg...South Korea's KIA , Hyundai and co were able to grow thanks to the opening of South Korea's first Iron and Steel complex in 1971).

I guess Japanese car manufacturers are an exception. But the trick they have used is produce high volume...so that they can have all the cash in the world to do what they want to do.

Innson's problem was not his lack of ideas...or that he was a bad businessman....but that his model was unsustainable so long as the local content was poor. If Ajaokuta had been working....Innoson would have grown easily in Nigeria..then Africa...then become big enough to start outsourcing production.

APC better fix Aajokuta.

In this modern age you don't need to reinvent the wheels.its more cheaper to import these readily available components,same reason why most auto majors have abandoned their engine moulds and have since outsourced from companies whom there area of expertise and businesses are centered around making vehicle engines.They most certainly have a better comparative advantage as they can offer any engine type for a far more cheaper price.

Quakertellicus1:


No, the parts were made abroad...and then assembled in Nigeria.

It is what companies like PAN, Volkswagen of Nigeria, Steyr, Leyland, and company used to do in Nigeria in the 1970's...they would import CKD (Completely knocked down ) parts into Nigeria and assemble them here into cars.

Solong as oil prices were high back then, and we could spend the dollars back then, we could do that with ease.

But back in 1973....construction work began on Ajaokuta Steel Complex...the idea being that all those car assembly plants would eventually make their cars in Nigeria...and end the imports of CKD parts. That unfortunately did not happen.

When oil crashed in 1982...the parts became too expensive to import , and eventually a new car became expensive in Nigeria...which is when the tokunbo industry began to grow....from the late 1980's on wards.(In 1975...you could get a new car for less than N6000. By 1990..that new car set you back N1million. By 1993....it was basically the government and the very rich that were buying new cars.)

What Innoson was doing was importing CKD parts from China and assembling them under the INNOSON marque. So long as the dollars were flowing in thanks to high oil prices....he could do that easily. But...once oil prices crashed, and the FG was forced to bring in restrictions on forex...that became difficult.

You see why GEJ's automotive miracle was a false mirage? We were just doing what we did in the 1970's....live on a false lie. You cannot have a good domestic car manufacturing industry without sufficient local content.

Innoson is a great man....where his problem was....his Achilles heel if you will ...was in the area of local content.

NNEWI, Nigeria, Aug 31 (Reuters) – At a factory in southeast Nigeria, dozens of new white buses stand at the end of the production line, apparently ready to take on some of Africa’s toughest roads.

Unfortunately for Nigeria’s main domestic vehicle assembly firm they are going nowhere for now.

In an economy starved of dollars because of the slump in oil prices, Innoson Vehicle Manufacturing (IVM) cannot buy imported components, leaving the buses without engines – a metaphor for the problems afflicting Africa’s most populous nation.
Read carefully, the buses are ready but the imported component i.e. the engine is the problem, this report shows that innoson produce his vehicles otherwise he could not have made the buses leaving only engines.

adconline:

Stop misinforming yourself. Powertrain is the most difficult and complex system to build. Chinese and Indian auto manufacturers are still using engines built by Japan and US today. What an arrogantly sophisticated prick!!

And guess what...it is the Japanese and US manufacturers that are still selling most of the cars used in the world today.

Them Chinese and Indians wont get anywhere until they get local content improved.

Innoson's problem is forex. If he was assembling enough cars....ie something like 1 million every year...he would have been able to make enough forex to keep on assembling and buying foreign tech until he was able to put his R and D team together...and Ajaokuta was working...for him to save money by doing everything at home.

But Innoson is not assembling enough cars...and was dependent on government patronage...which worked so long as oil prices were high.


Thing is....Innoson should have focused during the times of plenty....of making the engines in Nigeria. Not importing them from outside...which is too risky.

Chinese and Indian companies sell in high volume (Tata of India produced 580000vehicles in one year...Innoson does not get up to 10000 a year)...to earn money for those powertrains.

Quakertellicus1:


And most of them do that when they become big enough to do that...and when they are earning enough profits to do so.

All successful car manufacturers start off as local champions....growing via production of cars with high local content..before expanding out of their country.(eg...South Korea's KIA , Hyundai and co were able to grow thanks to the opening of South Korea's first Iron and Steel complex in 1971).

I guess Japanese car manufacturers are an exception. But the trick they have used is produce high volume...so that they can have all the cash in the world to do what they want to do.

Innson's problem was not his lack of ideas...or that he was a bad businessman....but that his model was unsustainable so long as the local content was poor. If Ajaokuta had been working....Innoson would have grown easily in Nigeria..then Africa...then become big enough to start outsourcing production.

APC better fix Aajokuta.

How can you build Ajaokuta when power generation was 0MW?
Producing steel is less proprietary technology than manufacturing car engines!! Also, how many Naija universities offer automotive engineering and design?!

It's getting real and I hope those people lying to themselves that they are producing this and that and that they are the largest economy in African can now see for themselves that GDP rebasing is Scam.

Assembly plant is not the same as Manufacturing plant...

#welcome to the REAL World.

You better stop lying to yourself and start fighting your leaders when they steal you dry and give you peanut without the developing you Country.

God Deliver Nigeria.


#OPTIMISTIC.

GogetterMD:

It's called sarcasm

Hmmm

basilo101:

NNEWI, Nigeria, Aug 31 (Reuters) – At a factory in southeast Nigeria, dozens of new white buses stand at the end of the production line, apparently ready to take on some of Africa’s toughest roads.

Unfortunately for Nigeria’s main domestic vehicle assembly firm they are going nowhere for now.

In an economy starved of dollars because of the slump in oil prices, Innoson Vehicle Manufacturing (IVM) cannot buy imported components, leaving the buses without engines – a metaphor for the problems afflicting Africa’s most populous nation.
Read carefully, the buses are ready but the imported component i.e. the engine is the problem, this report shows that innoson produce his vehicles otherwise he could not have made the buses leaving only engines.

He has the forex to import all the parts...except for the engines.

If he had a domestic engine manufacturing plant...which is what Ajaokuta and govt research sites like PRODA and CADD would have provided...we won't have been talking about this problem here.

You cannot be a car manufacturer without being able to design and make your own engines.And engines cost a lot of money to make and design...and as a result...are very expensive.

celestialAgent:
I'm not supprised.

Innoson has never occured to me as a car manufacturing company but a car part compilation company. Hence the reason for reliance on forex to import the parts to be coupled...

let's not embrace dependency, we need real productions!

Before you quote me, bear in mind that i'm not tribalistic, this is channelled at all Nigerians..

Ogbeni, there is no car manufacturer that manufactures all its components, just like there is no electronics company that manufactures all its components. There are companies whose sole product is just fuel pump or other related part. A car/electronic manufacturing company can partner/fund a research with the component manufacturer for a certain variation or specification of one or more components. That is how the manufacturing process works.

As a farmer, you cannot grow all your crop needs and still make commercial quantities available.

Between GEJ And GMB! Who is Clueless? Lolz hahahahahahahaha!! Have u Blame Jonathan today?? Feel the Chanji

Quakertellicus1:
Keep in mind that thanks to the fall in oil prices....we no longer have enough dollars to do anything.

And while Innoson was a good manufacturer.....his Achilles heeel was the failure to develop a LOCAL source for his cars.

oga which local source? Tell me that car component that is 100% manufactured in Nigeria.

Tell me the raw material in Nigeria that yo can use to manufacture some engine components

celestialAgent:
I'm not supprised.

Innoson has never occured to me as a car manufacturing company but a car part compilation company. Hence the reason for reliance on forex to import the parts to be coupled...

let's not embrace dependency, we need real productions!

Before you quote me, bear in mind that i'm not tribalistic, this is channelled at all Nigerians..

So where do you have the raw materials to produce all the parts locally?

adconline:

How can you build Ajaokuta when power generation was 0MW?
Producing steel is less proprietary technology than manufacturing car engines!! Also, how many Naija universities offer automotive engineering and design?!

That is where we put pressure on the government to fix the lights and fix the funding problem in our education sector....and develop an economy that is not oil dependent.

APC get work....and that is what I would be judging them on. No more ''I will build roads'' government.

Nigeria has to change...and not just this government.

basilo101:

NNEWI, Nigeria, Aug 31 (Reuters) – At a factory in southeast Nigeria, dozens of new white buses stand at the end of the production line, apparently ready to take on some of Africa’s toughest roads.

Unfortunately for Nigeria’s main domestic vehicle assembly firm they are going nowhere for now.

In an economy starved of dollars because of the slump in oil prices, Innoson Vehicle Manufacturing (IVM) cannot buy imported components, leaving the buses without engines – a metaphor for the problems afflicting Africa’s most populous nation.
Read carefully, the buses are ready but the imported component i.e. the engine is the problem, this report shows that innoson produce his vehicles otherwise he could not have made the buses leaving only engines.

The guy you quoted doesn't know what he's saying. I was at innoson plant several times last year and I can tell you that all thebody parts (metal/plastics) are wholly made in that factory. The tires are brought in from his other factory in the east.People don't travel all they do is lazy around and busy creating a mental picture of how successful people made their money.

deji15:

In the southeastern city of Aba – known as the “Japan of Africa” until the 1970s – more than 2,000 shoemakers have shut because they cannot pay for imported glue or synthetic leather, whose prices has surged due to the black market dollar rate.

The solution is replace imported parts with local content..

So, with all the various animals in Nigeria, we cannot get enough synthetic leather from them
Importing glue??

As a secondary school pupil, I was making glue / gum from bark of the cashew tree in our school compound....

We need to change our orientation..

Good one. Where is the Ministry of Finance, Industries and that of Trade and Investment and Science and Technology. This is where they earn their pay. By taking a hard look at all forex requirements and categorizing them according to 0% local substitution, partial local distribution and 100% local substitution by scouring the entire length and breadth of Nigerian local industries. You will be surprised to find just how much is available locally but is ignored on grounds of quality, price and preferences. SON should mandate manufacturers to ensure that their products to be sold in Nigeria publish their local vendors in regular newsletters and their local contents on every package with the Nigerian flag or other insignia boldly printed. Create a partnership, synergy or a platform where local producers and manufacturers can interact at the highest levels of governme to streamline production quality, costs and inventories.

Fedayeen02:
oga which local source? Tell me that car component that is 100% manufactured in Nigeria.

Tell me the raw material in Nigeria that yo can use to manufacture some engine components

We have it....it is just that we would rather sell it off to earn money to share amongst ourselves ...rather than use it to fire our local industrial sector.

Quakertellicus1:


And guess what...it is the Japanese and US manufacturers that are still selling most of the cars used in the world today.

Them Chinese and Indians wont get anywhere until they get local content improved.

Innoson's problem is forex. If he was assembling enough cars....ie something like 1 million every year...he would have been able to make enough forex to keep on assembling and buying foreign tech until he was able to put his R and D team together...and Ajaokuta was working...for him to save money by doing everything at home.

But Innoson is not assembling enough cars...and was dependent on government patronage...which worked so long as oil prices were high.


Thing is....Innoson should have focused during the times of plenty....of making the engines in Nigeria. Not importing them from outside...which is too risky.

Chinese and Indian companies sell in high volume (Tata of India produced 580000vehicles in one year...Innoson does not get up to 10000 a year)...to earn money for those powertrains.

Tell us how many cars Tata produced in its first 5 years of operation?
How come Fiat, Cummins, AVL are still building engines for Tata motors in spite of being in business for over 70yrs??

adconline:

Tell us how many cars Tata produced in its first 5 years of operation?
How come Fiat, Cummins, AVL are still building engines for Tata motors in spite of being in business for over 70yrs??

Because Tata can pay them to do the job...because Tata motors is part of a larger conglomerate by the by.

from innoson facebook page ten hours ago
http://innosonmotors.com/innoson-motors-employs-200-niger-delta-ex-militants/

Outsourcing has lead to a very wide extent. There is virtually no example for any part of a car which is not made by anybody else. The classical car factory makes many things which are made out of metal, which is mainly the engine, the body structure, doors and lids. But even this sometimes comes from a ccoperation. The body of the Porsche Cayenne is made by a factory in Slovakia which also makes the bodies for Audi Q7 and VW Touareg. BMW, Chrysler and Toyota used to share engines made in Brazil for different cars. Ford and VW ran a factory in Portugal for decades, which assembled the Ford Galaxy, VW Sharan and Seat Alhambra. Today the depth of manufacturing (i.e. the amount of work done at a car opposed to the parts bought from somewhere else) is below 50%. Most car makers run factories for their engines (they do not buy them from other sources), but many of them do not built their own gearboxes or suspension components. Today often even the assembly is outsourced. In former times it was common to assemble a dashboard from parts delivered by a third source. Today car manufacturers like VW get a complete dashboard with all the gauges, display, car entertainment and navi system delivered to the assembly line.
This was copied from a simple google search. No car assemble manufacture 100% of its parts. Car companies share parts. Innoson build the body frame and plastics. So he is grouped under car manufacturing company. People should read before talking.

Quakertellicus1:


He has the forex to import all the parts...except for the engines.

If he had a domestic engine manufacturing plant...which is what Ajaokuta and govt research sites like PRODA and CADD would have provided...we won't have been talking about this problem here.

You cannot be a car manufacturer without being able to design and make your own engines.And engines cost a lot of money to make and design...and as a result...are very expensive.

False!! Not true! Most car companies don't build their engines!!

LabiaMajoraDest:
Blame it on the gworo chewing dullard...

burukutu-sipping,gworo-chewing, daura dull.ard....

Quakertellicus1:


He has the forex to import all the parts...except for the engines.

If he had a domestic engine manufacturing plant...which is what Ajaokuta and govt research sites like PRODA and CADD would have provided...we won't have been talking about this problem here.

You cannot be a car manufacturer without being able to design and make your own engines.And engines cost a lot of money to make and design...and as a result...are very expensive.

Innoson manufactures 70% Of its parts in Nigeria. There is a plastics and fibre plant in Emene, Enugu.

adconline:

False!! Not true! Most car companies don't build their engines!!

But the big guys have the ability to do so.

Anyway....if Innoson wanted to solve his forex problems....he had to have been a large volume manufacturer of cars. It is that simple.

Buy naira to grow naira, they said.
Patronize Innoson to grow naira, they said.


This same innoson is dependent on forex. I must have missed something...

Dyt:
It is well

Na lie!

celestialAgent:
I'm not supprised.

Innoson has never occured to me as a car manufacturing company but a car part compilation company. Hence the reason for reliance on forex to import the parts to be coupled...

let's not embrace dependency, we need real productions!

Before you quote me, bear in mind that i'm not tribalistic, this is channelled at all Nigerians..

see as u dey talk like say u na Kenyan man, like say wetin u dey talk, no be human beings like u dey do am, like say you don't even have hopes that you can do it...I pity u.

Fawklicant:


Innoson manufactures 70% Of its parts in Nigeria. There is a plastics and fibre plant in Emene, Enugu.

So long as he cannot make the engine...and so long as he is not making enough cars to sell for export and forex....he won't be able to solve his forex issues.

Reference:


Good one. Where is the Ministry of Finance, Industries and that of Trade and Investment and Science and Technology. This is where they earn their pay. By taking a hard look at all forex requirements and categorizing them according to 0% local substitution, partial local distribution and 100% local substitution by scouring the entire length and breadth of Nigerian local industries. You will be surprised to find just how much is available locally but is ignored on grounds of quality, price and preferences. SON should mandate manufacturers to ensure that their products to be sold in Nigeria publish their local vendors in regular newsletters and their local contents on every package with the Nigerian flag or other insignia boldly printed. Create a partnership, synergy or a platform where local producers and manufacturers can interact at the highest levels of governme to streamline production quality, costs and inventories.

I agree. Like an adage in my language that says: It is time to re pound the yam and to re make the soup. The other thing is that these things require time.

celestialAgent:
I'm not supprised.

Innoson has never occured to me as a car manufacturing company but a car part compilation company. Hence the reason for reliance on forex to import the parts to be coupled...

let's not embrace dependency, we need real productions!

Before you quote me, bear in mind that i'm not tribalistic, this is channelled at all Nigerians..

Pls can u name a car manufacturing company that produces all it's parts and tire,plugs.they only work in alliance with other parts manufacturing specialist.befor u browse internet , u bought phone , sim from diff sources.eg danso plug and coil are not produce by Toyota but mostly in Toyota cars