#CarNews: Volkswagen to develop an automotive hub in Nigeria

During the visit of the Chancellor of Germany Angela Merkel to Nigeria, Volkswagen took the opportunity to sign a memorandum of Understanding (MoU) in the presence of both the Chancellor and His Excellency, President of the Federal Republic of Nigeria, Muhammadu Buhari in Abuja to develop a joint vision for an automotive hub in that country. The Head of Volkswagen Sub-Saharan Region, Thomas Schaefer signed the agreement on behalf of Volkswagen with the Nigeria’s Minister of Industry, Trade and Investment, Dr. Okey Enelamah.

The Volkswagen Brand thus took the next step in expanding its influence and presence in Sub-Saharan Africa. This comes a day after the signing of the MoU in Ghana in the presence of Chancellor Merkel and Vice President of Ghana, Mahamudu Bawumia whereby Volkswagen committed to set up a vehicle assembly and conduct a detailed feasibility study for the development of an integrated Mobility Solution in Ghana.

In the MoU, Volkswagen undertakes to implement a phased approach in relation to the assembly of vehicles, initially from assembly kits with the long term view of establishing Nigeria as an automotive hub on the West Coast of Africa. This will include establishing a training academy in conjunction with the German Government, which will train the initial employees. The academy will also provide broader technical training in automotive skills. It is also intended that a comprehensive Volkswagen vehicle and service network is developed in the country subject to commercial viability.

In turn the Nigerian Government undertakes to accelerate the approval of the Nigerian Automotive Policy, currently under consideration. This includes the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles.

The Government has committed to providing a conducive legislative environment that will encourage the manufacturing of motor vehicles in Nigeria.

Volkswagen has a fully-fledged manufacturing facility in South Africa, and assembles vehicles in Kenya, Algeria as well as in Rwanda, in conjunction with an Integrated Mobility Solution offering Community Car Sharing and shortly to be launched Ride Hailing.

Volkswagen will continue to grow its importer network in Sub-Saharan Africa and explore other opportunities for growth and development. As a next step, exploratory talks are being held with the Government of Ethiopia.

Source: Press Release

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