PAN Nigeria is currently realigning strategies to re-acquire the company’s lost market share in the last decade and restart assembly operations in June this year.
Ibrahim Boyi, managing director and chief executive of PAN Nigeria Limited gave made this reassurance last week in Lagos when the company once again bounced back into the market fray with the unveiling of new Peugeot 301, 408 and 5008 inside the Federal Palace Hotel, Lagos.
Ibrahim Boyi regretted that in the last decade, the combined factors of unstable government policies, inadequate tariff protection for local assembly plant, global financial meltdown and weak management in different degrees affected the fortunes of PAN tremendously.
Aimed with statistical proof, the managing director stated that car sales quantity and turnover declined from 11,768 vehicles and N31.7bn in 2007 vehicles to 659 vehicles and N1.96bn in 2013 respectively.
On the other hand, direct employees of PAN were reduced to 230 from 1,120 over the last decade, while dealership networks and service centres along with over 70 local auto component manufacturers were all decimated. The agreement with Peugeot France was also suspended in 2010.
But despite all these period in the history of the organization, these developments have not in anyway affected the condition or state of readiness of PAN assembly plant. “In its current form, it remains the best and most comprehensive assembly plant in the West Coast of Africa.”
In 2012, the Asset Management Company of Nigeria (AMCON) acquired the debts of the company and converted a portion to equity, leading to 80% shareholding in PAN Nigeria Limited, acquiring board and management control. A new borad, led by Muhammed Munir Ja’afaru and management was appointed by AMCON in July 2013 with the mandate to turn around the fortunes of the company to realize the foundation of its foundation.
Among other responsibilities, key statges in reacquiring lost market share include; restoring the commercial and technical agreement with Automobile Peugeot, France, revamping the dealership network, after sales support and internal commercial organization and competitive products offering.
He reiterated that while in re-starting the assembly plant operations, the following key success factors were essential: protective government policy to warrant competitiveness for local assembly and local content addition, effective border controls to stem smuggling of new and used vehicles and improved efficiency of local infrastructure and logistics.
Boyi was optimistic that PAN Nigeria was on course in realizing the mandate in most of the areas listed above, as evidenced in the commercial launch of the new Peugeot models. He maintained that the recently unveiled auto development plan is designed to restart the local auto assembly plant and local component manuafacturers.
PAN and Peugeot France he disclosed have keyed into the policy and assured that the assembly of Peugeot vehicles at the Kaduna plant will re-start in June this year. The brand have evolved to meet the modern market requirements in terms of beauty, brains and frills, while retaining the key value of the brand in reliability, performance, safety and emotion.
Over the years, Peugeot have achieved a new high in economy of ownership of its vehicles. These are embodied in higher fuel efficiency, longer service periods, fewer replacement parts and precise repair technology.
As he put it, “We are conscious of the strong emotive streak running through our customers with regard to the brand experience. We, our parents or grandparents at one point or another have had a Peugeot car. It is our intention to relive that experience for the benehfit of the next generation.”
PAN’s creation forty years ago is also a vision of a particular government and its leaders in the country. Fuelled by the ambition to make Nigeria a regional undustrial giant, those leaders articulated and fiercely executed policy decisions, laying the strongest foundation till date of a comprehensive development plan for Nigeria.
Mike Ochonma
