The Federal Government’s recently-mooted new policy of revitalizing the nation’s automobile sector has received a boost.
The positive sign came from Renault-Nissan Alliance and West African conglomerate, Stallion Group, which have signed a preliminary agreement to start vehicle assembly in Nigeria.
The duo have signed a Memorandum of Understanding, which will result in Stallion – already Nissan’s exclusive distributor in Nigeria increasing capacity at its existing plant, that is, VON Automobile Limited in Lagos.
The Federal Government’s recently-mooted new policy of revitalizing the nation’s automobile sector has received a boost.
The positive sign came from Renault-Nissan Alliance and West African conglomerate, Stallion Group, which have signed a preliminary agreement to start vehicle assembly in Nigeria.
The duo have signed a Memorandum of Understanding, which will result in Stallion – already Nissan’s exclusive distributor in Nigeria increasing capacity at its existing plant, that is, VON Automobile Limited in Lagos.
The statement said that the plan may potentially create a major Nissan manufacturing hub for Africa.
It said that the memorandum of understanding would see Stallion, which was Nissan's exclusive distributor in the country, increase capacity at its existing plant in Lagos.
The statement quoted the President and Chief Executive Officer, Nissan; Mr. Carlos Ghosn, said: “We welcome the proactive measures being taken by the government of Nigeria to encourage inward investment and job creation driven by local auto manufacturing.
According to him, “Stallion currently produces commercial vehicles at the facility, but the plant's annual capacity will be expanded to 45,000 units to assemble a range of cars, light duty trucks, pickups and vans.
“Together with our local partner, Nissan is preparing to make Nigeria a significant manufacturing hub in Africa. As the first mover in Nigeria, we are positioned for the long-term growth of this market and across the broader continent”, he stated.
The statement also quoted the Chairman, Stallion Group, Mr. Sunil Vaswani, as saying, that “the new automotive policy spearheaded by President Goodluck Jonathan and the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, is a laudable government initiative aimed at making Nigeria the regional leader in the industry.
“Our group is committed to investing in a fully integrated automobile industry that fosters the creation of several ancillary industries with associated socio-economic benefits.
“We value our partnership with Renault and Nissan immensely and are aiming to deliver world class expertise to Nigeria.”
His counterpart also said: "Nissan is preparing to make Nigeria a significant manufacturing hub in Africa.
"As the first-mover in Nigeria, we are positioned for the long-term growth of this market and across the broader continent".
The statement said that the move came as a fillip to the government was expected to approve a new policy designed to encourage the development of the automobile industry in Nigeria.
It said that the first vehicle to be introduced would be the Nissan Patrol SUV in the spring of next year.
The statement said that the plant would also be opened to the French auto group, Renault, though the companies did not give any details.
It said that Japan's Nissan was aiming to double annual sales in Africa by 2016 from 110,000 units last year.
The statement said that the alliance had already planned to launch the Datsun brand in South Africa before the end of next year.
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