Ford mulls assembly in Nigeria, but using Silverton capacity a priority
Ford Motor Company was mulling vehicle assembly in Nigeria, said Ford Motor Company of Southern Africa (FMCSA) president and CEO Jeff Nemeth on Monday.
Addressing a media briefing in Pretoria, he said Nigeria was one of the first African countries outside South Africa to produce a local vehicle manufacturing plan.
Nissan in April became the first major vehicle manufacturer to build a car in Nigeria, following the announcement of the Nigeria Automotive Policy, which in January raised import tariffs on fully built-up cars from 20% to 70% for those companies which do not participate in the West African country's programme. (South Africa had a 25% import duty on passenger cars.)
Nemeth said Ford would need to see how many other countries in Sub-Saharan Africa followed Nigeria’s lead before it made any decisions on establishing new manufacturing hubs on the continent.
It was highly unlikely that Nigeria would be the only country shaping policy to urge local vehicle assembly, he noted.
Nemeth said, however, that he would like to see FMCSA’s Silverton plant operate at capacity before any new capacity was installed elsewhere on the continent.
He added that South Africa held significant advantages over its neighbours in terms of road, rail, electricity supply and skilled human capital.
He also warned that it would take any country “decades” to build an automotive sector.
The positive effect of new assembly hubs outside South Africa would be that Ford could bring new products to Africa, said Nemeth.
It would also be possible for FMCSA’s component suppliers to export their products into Africa.
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