Following the official granting of Peugeot Car Assembly Plant franchise by the Peugeot of France Groupe to construct and operate an assembly plant in Nigeria, indications are rife that the plant of nearing completion, will deepen the nation’s auto industry.
The emerging massive plant is located Dutse, along the Kaduna-Abuja expressway, Kaduna, about 25 kilometres away from the present location of PAN Limited assembly plant in Kakuri industrial layout of Kaduna.
Business Hilights gathered that the new assembly plant by Dangote-Peugeot Automobile Nigeria Limited (DPAN) is a joint venture between Dangote Industries Limited, the Kaduna state government, and Peugeot of France PSA Groupe. This became a possibility when Dangote group made an initial N11 billion bid for majority stake in Peugeot Automobile Nigeria (PAN) from the Asset Management Company of Nigeria (AMCON).
The new Peugeot Assembly is set to join forces with other automobile competitors such as Innoson, Toyota, Kia, and Leyland Assembly plants to motorise Nigeria.
Dangote Group of Companies is known for selling goods at the slimmest margins of profit apparently for quick turnover and revenue from after-sales services. Again, with the collaboration with the Kaduna state government, it therefore means that patronage from the state government is also guaranteed since
Recall that Peugeot’s executive vice president for Africa and the Middle-East, Jean-Christophe Quemard, met President Muhammadu Buhari recently to discuss reviving local production in the country. Recall also that in 2016, AMCON invited prospective investors to bid for its 79.3 per cent stake in Peugeot Automobile Nigeria. AMCON acquired a majority stake in PAN in 2012 after taking over the company’s debts worth about N30 billion owed to some Nigerian banks.
Peugeot Automobile Nigeria Limited (PAN) was incorporated on December 15, 1972, as a limited liability company with an authorized share capital of N3 million and commenced full operations on March 2, 1975.
After about two decades of smooth operations, the company ran into unpleasant situations occasioned by series of policy somersaults by the government and inadequate tariff protection for local assembly plants.
