There
are indications that Ford Motor Company has suspended its planned exportation
of 500 units of vehicles meant for the Nigerian market owing to the current
economic recession.
The
United States automaker was said to have assembled the vehicles in its South
African factory and completed all arrangements to ship them to Nigeria before
halting the decision.
Prof.
Okey Iheduru of the Arizona State University, United States, hinted at a forum
in Lagos that Ford had dismantled over 500 units of vehicles meant for the
Nigerian market because the Coscharis Group, its local representative, could
not accommodate them.
The
General Manager, Marketing and Corporate Services, Coscharis Group, Mr. Abiona
Babarinde, who confirmed this in an emailed enquiry, attributed the development
to “forex-related issues.”
He
said the vehicles were “to be imported as SKD (semi-knocked down) kits for
(auto) assembly but got stuck in South Africa because of slow sale of what we
already have in stock in Nigeria.”
Ford
recently discontinued its business relationship with one of its two partners in
Nigeria, RT Briscoe, leaving only Coscharis Motors as its sole representative
in the country.
A
statement from the Ford Motor Company of Sub-Saharan Africa sent via email said
tough economic climate arising from the fall in oil prices, foreign exchange
shortages and rapid devaluation of the naira was adversely affecting its
operation in the region, including Nigeria.
The
statement, which was sent by its spokesperson, Chipo Punungwe, read in part,
“We continue to work through a tough economic environment in the sub-Saharan
African region, including various economic factors such as lower oil prices,
foreign exchange shortages and the rapid devaluation of local currencies, which
have led to higher than normal inventory levels.”
Assemblers
and dealers in new vehicles have complained about a drastic drop in vehicle
sale this year due to recession.
A
number of the companies, it was learnt, had to lay off some of their workers as
their annual capacity utilisation had dropped by 97 per cent, from 500,000 to
15,000 vehicles.
The
15,000 new vehicles currently being produced in the country are less than what
Toyota Nigeria Limited alone sold in 12 months some years ago.
Notwithstanding
the current economic situation, Ford said it would continue to work with its
partner, the Coscharis Group, to deliver quality vehicles and improved auto
service to its customers in Nigeria.
“With
Coscharis, we will continue to manage our business, review and optimise the
movement of stock to ensure that we have a sufficient supply of vehicles to
fulfil customers’ needs,” it stated.
Source:The
Punch
Tags
Business