Fresh facts have emerged that Volkswagen of Nigeria (VON) Automobile Limited may commence full operation of assembling of vehicles in the country before the end of the December 2012.
The management of the company has said that fresh initiative to launch the second phase of resuscitating vehicle assembling plant is still on course.
Fresh facts have emerged that Volkswagen of Nigeria (VON) Automobile Limited may commence full operation of assembling of vehicles in the country before the end of the December 2012.
The management of the company has said that fresh initiative to launch the second phase of resuscitating vehicle assembling plant is still on course.
VON Automobile Limited has also disclosed that there are plans to invest over N20 billion in the acquired auto plant even as it said that it has so far invested more than N2 billion through direct foreign investments, spearheaded by her parent company since 2011.
Speaking in Lagos recently when the House Committee on Privatization visit the revived plant, the Managing Director, VON Automobile, Mr. Tokunboh Aromolaran said that the investment of N20 billion would be determined by the government ‘s policy for the country.
Aromolaran said that plans are ongoing to make Nigeria a hub in automobile production in sub Saharan Africa stressing that the retooling of the first phase of the moribund Volkswagen plant began in May 2011 to November 2011.
According to him, the plant has rolled out the first locally assembled Ashok Leyland commuter bus adding that the assemblage of potent economic team by the present administration is unprecedented in the country’s history.
He told the visiting legislatures, who were on oversight mission ,that Stallion Group had acquired controlling interest in the plant to demonstrate its commitment to the local automotive sector where it had over years played significant roles.
VON auto recently secure assembly arrangements with Ashok Leyland of India, Hyundia from Korea, Volkswagen from Germany and FOTON from China, employs about 300 Nigerians.
Aromolaran is however convinced that the first phase of the plant is in full swing, refurbishing and installed with new production machine for efficient operation ‘we reiterated that the core activity of VON auto mobile Nigeria Limited is the assembly of auto and manufacture auto components required to economically facilitate local production. This implies substantial local value added, gradual substitution of locally manufactured component for goods hitherto wholly import’.
“The acquisition of controlling interest in VON is in furtherance of stallion Group’s corporate vision to create value segments in the local auto motive industry, where we have played significant role”, he said.
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