Ford Motor Company is mulling vehicle assembly in Nigeria, says Ford Motor Company of Southern Africa (FMCSA) president and CEO Jeff Nemeth.
He says Nigeria is 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 policy programme. (South Africa has a 25% import duty on passenger cars.)
Nemeth says Ford will need to see how many other countries in sub-Saharan Africa follow Nigeria’s lead before it made any decisions on establishing new manufacturing hubs on the continent.
It is highly unlikely that Nigeria will be the only country shaping policy to urge local vehicle assembly, he notes.
Nemeth says, however, that he will like to see FMCSA’s Silverton plant operate at capacity before any new capacity is installed elsewhere on the continent.
He adds that South Africa holds significant advantages over its neighbours in terms of road, rail, electricity supply and skilled human capital.
He also warns that it will take any country “decades” to build an automotive sector.
The positive effect of new assembly hubs outside South Africa will be that Ford can bring new products to Africa, said Nemeth.
It will also be possible for FMCSA’s component suppliers to export their products into Africa.