Assures Peugeot Automobile Nigeria will dominate ECOWAS
Peugeot Automobile Nigeria New owners, Nesbitt Investment Nigeria Limited said it would inject $150 million to revive the ailing automobile company which commenced production in 1975 with 60,000 vehicles.
The new owners which recently took over the management of Peugeot Automobile Nigeria, PAN, Limited also assured that the company will offer affordable new cars to Nigerians.
The New Chairman of Peugeot Automobile Nigeria, Mr Ahmed Aliyu, in a statement released on the company’s official website said, ”Peugeot Automobile Nigeria, PAN Nigeria will be introducing new brands of vehicles into the market to re-launch brand affordability in Nigeria, such that Nigerians will have access to brand new vehicles.”
“We treasure our human capital and strongly believe in them to drive our visions and aspirations for PAN Nigeria and that is why we are immediately putting in place an attractive condition of service that will retain and motivate our human capital and also attract the best hands, so as to restore PAN Nigeria to it’s number one position in Nigeria and within the ECOWAS region.”
Aliyu further assured of introducing a robust car financing scheme which will be a collaboration and partnership between the firm’s dealerships and a few selected banks.
According to him, “Peugeot Automobile Nigeria, PAN Nigeria, as the number one auto assembly plant in Nigeria, shall take the leadership role in engaging stakeholders and shall be involved in the activities of the Bureau for Public Enterprise (BPE) committee set up to examine the auto industry.” he added.
Peugeot Automobile Nigeria Limited, which has remained a milestone in Nigeria’s automobile industry, was conceived in 1969 by the then Federal Military Government under the leadership of General Yakubu Gowon. And in the build-up to actualize the dream, 16 reputable vehicle manufacturing companies were invited to tender their proposals for the establishment of a vehicle assembly plant in the country. Thus, with the high acceptability and demand of Peugeot vehicles in the country, the proposal of Automobile Peugeot France (AP France) scaled through on May 7, 1971.
Peugeot Automobile Nigeria Limited, a joint venture between the Federal Government and AP France, was incorporated on December 15, 1972 and 27 months after incorporation, the Kaduna based assembly plant was commissioned by General Yakubu Gowon on March 11, 1975.
Peugeot Automobile Nigeria commenced production on March 2, 1975 with an annual output of 60,000 cars, improving substantially to 90,000 cars per annum in the 1980s with more than 2000 staff on its payroll. PAN’s role in the industrial sector at inception, was significant as it greatly relied on local suppliers who provided about 37% local content for production.
Between 1975 and 1986, Peugeot Automobile Nigeria produced the 404 Salon alongside the 504 models. The first 504 was a 1.8L engine base model accompanied by its luxury series with a 2.0L engine capacity. In 1986, the 504 Ambulance was introduced, while the J5 and Boxer followed two years later. The first series of the 505 was eventually replaced by the 505 Evolution in year 2000. Other models produced by the company which came in quick succession between 1995 and 2008 include the 306, 406 and 307 Sedan respectively.
In October 2011, Peugeot Automobile Nigeria, in effort to reassert its position as the country’s leading automobile manufacturer, signed a Technical Agreement with Changan International Corporation (CIC), the fourth largest automobile plant in China, and the brand owners of Alsvin, to produce and market the product in Nigeria and West Africa.
In November 2006, Peugeot Automobile Nigeria was privatized in line with Government’s agenda to build a stronger, more competitive and diversified economy; ASD Motors emerged as the successful core investor and took over management of the company in January 2007.
The expectation was that the privatization of Peugeot Automobile Nigeria would create a quantum leap in performance, but that has not happened as planned.
Following the accumulation of huge non-performing loans (NPL) indebtedness to banks, in October 2012, the Asset Management Company of Nigeria (AMCON) acquired the debts of the company and converted a portion to equity to help restructure the firm.