Ford withdraws from Nigerian market, suspends vehicle exportation

By Admin on 31/10/2016

Share on facebook Yahoo mail icon Gmail icon

Views: 723


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.

PUNCH gathered that 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 response to PUNCHNG, 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 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.

 

Posted on October, 31 2016

Share on facebook Yahoo mail icon Gmail icon


You may also like...
Community policing is effective if implemented in synergy...

Army apologises to family of Okada rider beaten...

More people to be infected with Ebola by...

Osaro Resigns as PDP DG of Governors Forum...

Abia targets N1 billion IGR

CBN to Introduce Dual Exchange System

Govt to shut Third Mainland Bridge for four...

FG advised to extend privatisation to other sectors...

Nigerians gear up for Saturday's elections

N1.126bn fraud: Court jails Ex-gov. Dariye for 14...

Ukwa Can Transform Abia's Economy : Gov Ikpeazu...

PDP launches media war against APC
News Abia Election Special (3) Abia Supplementary Polls Update (18) Abia Supplementary Result update (22) Appointments (8) Breaking News (195) Business (40) Campus News (3) Crime (114) Economy (107) Education (116) Entertainment (144) Fashion and Style (3) General (789) Health (107) Inside Africa (40) International News (303) Interviews (28) National (1918) Politics (921) Press Releases (108) Religion (9) Security (125) Sports (431) Technology (23) World News (87)

 

 

Advertisement

 

Latest News Abia, Akwa Ibom state Govt move to halt hostility in border communities PDP moves to pacify defeated presidential aspirants PDP moves to pacify defeated presidential aspirants Kano Assembly to probe alleged Ganduje's bribery video Court orders Adeleke's arraignment on Oct 21 over Exam malpractice Atiku/Obi ticket, promising —Ihedioha Hauwa Leman: FG Expresses Sadness at the Execution Yoruba group hails Obasanjo for endorsing Atiku for 2019 race 2019: Buhari is history… even his wife isn’t supporting him - Agbakoba PSC, IG disagree over planned demotion of 1,500 officers

 

Most Read Islamic agenda for Nigeria – Pastor Bosun (23,505 views) The show of shame that sealed Justice Uzokwe’s fate (17,400 views) 47 YEARS AFTER, HIS EXCELLENCY, COMMODORE EBITU UKIWE (Rtd) MAKES THE “OFO NDI IGBO” RECIPIENTS LIST (15,336 views) Breaking News : Dr Okezie Ikpeazu resigns from Abia State Environmental Sanitation Agency (ASEPA). (7,403 views) Lawyers accuse Lagos Police of working for PDP (7,139 views) Radio Biafra delivers AM Transmitter (6,926 views) ‘Why fuel scarcity persists’ (5,804 views) Nurse Justina Obi Ejelonu, one of the nurses that contracted Ebola virus is dead!!! (5,527 views) 2015: Abia’s plethora of governorship aspirants (5,308 views) Breaking News : 2015 - Abaribe withdraws from Abia guber race, backs Ikpeazu (5,306 views)