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VON Automobile MD wants FG to secure Nigeria’s automobile industry for investors

Mr Tokunbo Aromolaran, MD VON Automobile
The Managing Director, VON Automobiles Nigeria ( Formerly Volkswagen) Mr Tokunbo Aromolaran, has urged the Federal
Government to initiate a policy that will secure the nation’s automobile
industry for investors.

Aromolaran, who is also the
Chairman, Nigerian Automobile Manufacturers Association, gave the advice in an
interview with the News Agency of Nigeria (NAN) in Lagos.

He said that when initiated, the
policy should enable investors in the industry to channel their efforts towards
making long-term investment plans and profit.
“It is important that we create a
very stable environment and that people that are investing have the assurance
that things will not continually change as has been the case in this country in
the past few years.
“If that be the case, we would
attract investments. If we attract investments, then we will gradually get to
where we want to go.
“All we need to do is just to
have the guts to give it a start and then, nothing that is good comes without
“There must be a little birth
pain that we have to go through, after which we can then have a level and
competitive playing field.
“If we keep having ‘tokunbo’ (used)
cars flood the market, the volume produced locally would be small and the
prices will be high.
“And that was the rationale for
the tariff structure to support the local assembly facilities such that they
can produce in high numbers.
“High numbers mean you can spread
your overheads and each unit cost will be much lower.
“What we want to achieve is one
situation in which we can produce cars at about the same price as a lot of our
people spend on buying five, seven year-old cars, which will never pass any
emission test anywhere in the world.
“This is the only place those
cars will find acceptance. Other people have rejected them.
“We have to start being part of
being human and start living a fairly decent life.’’
The managing director decried the
massive importation of second-hand vehicles, saying that it had the capacity to
affect the country’s automobile development plan.
According to him, the automobile
industry in Nigeria has the resources and the manpower required for the
production of automobiles to equal its counterparts in developed economies. 

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