VW drives growth in Africa - CNBC Africa

VW drives growth in Africa

Special Report

by Imara Africa 0

German automaker, Volkswagen Automobile Group, has resumed vehicle assembling in Nigeria after 20 years in a bid to foster sales growth in Africa, after suspending operations in the country following the collapse of its joint venture with the Federal Government, reports The Punch.

Already, the auto giant says it has rolled out the first set of vehicles — Passat, Jetta, CC and Amarok models — from the rejuvenated Volkswagen auto assembly factory on the Badagry Expressway in Lagos.

The production, it said, was made possible through a partnership agreement it signed with a private auto company, the Stallion Group, for the assembly of Volkswagen vehicles in the country in line with the National Automotive Industrial Plan announced by the Federal Government in October 2013. Stallion Group also assembles vehicles in Nigeria for Nissan, Hyundai, Ashok Leyland and CNH Industrial NV’s Iveco truck division.

With VW’s activities resuming, we believe that Nigeria’s automotive industry will benefit from the attendant skills development, employment generation and technology acquisition.This would be positive for Nigeria as it seeks to diversify its economy away from the over reliance on oil, with manufacturing having been identified as one of the key avenues to pursue to that end.