VW resumes vehicle assembling in Nigeria …after 20 years

German automaker, Volkswagen Automobile Group, has
resumed vehicle assembling in Nigeria 20 years after
suspending operations in the country following the
collapse of its joint venture with the Federal
Government.
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, 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 the
Volkswagen brand of vehicles in the country in line with
the National Automotive Industrial Plan announced by
the Federal Government in October 2013.
A statement by the Stallion Group quoted the leader of
the Volkswagen Group’s delegation from Germany, Mr.
Ratz Wolfgang, as saying, “Today marks the revival of
the assembly of Volkswagen vehicles in Nigeria.
Volkswagen has returned to Nigeria to continue a long
history that began in the 1970s.
“We are certain that further growth is possible, which is
why Volkswagen is constantly searching for new
opportunities to increase its global market and sales
potential, and we appreciate the fact that we are able
to strengthen our business relationship with our
professional partner, Stallion Group.”
The Stallion Group recently acquired the moribund
Volkswagen of Nigeria plant, resuscitated it and
commenced the assembling of buses, trucks, pick-ups
and passenger vehicles at the facility.
Specifically, the group said it was assembling Nissan,
Hyundai, Ashok-Leyland and IVECO vehicle brands at
the factory, adding that it had developed a large team
of skilled human resources following extensive training
by specialists from the respective principals.
It stated that the launch of Volkswagen vehicles was
another major catalyst for the revival of Nigeria’s
automotive industry, which could lead to the
development of multiple ancillary industries and
component manufacturers, apart from fostering
engineering skills and generating employment.
The Chairman, Stallion Group, Mr. Sunil Vaswani, said,
“This is a great moment for Stallion in partnering a
world leading global brand like Volkswagen. We are
immensely pleased to bring back the proud legacy of
Nigeria’s automotive industry, the Volkswagen brand
that once was indigenously produced at the same
premises.
“Stallion is committed to investing and expanding its
operations in the automotive value chain across
multiple global brands and paving the way for Nigeria
to establish itself as a regional leader in the automobile
eco-system.”
The Managing Director, Stallion Motors, Mr. Raju
Sawlani, described the company’s partnership with the
Volkswagen Group as noble and stressed that the
Stallion Group had broken a new ground in partnering
with a leading global brand like Volkswagen.
“This will further enable us to create employment,
acquire technology for our industrialisation and reduce
pressure on the country’s balance of payment position
resulting from escalating vehicle import bill,” he said.