Mario Spangenberg, president and managing director, General Motors Africa has thrown his weight behind Nigeria’s new automotive policy stating that the move will not only boost job creation, but would also fast-track industrial development and transfer of technology.
Spangenberg who assumed office at the General Motors office in Port Elizabeth, South Africa as chief executive last year after a stint with GMs operations in North Africa however cautioned that the survival of any assembly plant in Nigeria and sustainability of locally produced vehicles in the market can only succeed when there is a complete ban on parallel imports and used cars referred to as ‘tokunbo’ in local parlance.
The company chief who was on two-day official visit in Nigeria for the first time since taking over as GMSA arrow head was in the country on fact-finding tour to study and further see how new opportunities could be tapped and exploited to push the Isuzu brand forward in the local market.
Speaking during his separate visits to CFAO Intermotors and Koncept Autocenter Limited, the two local dealerships for Isuzu and Chevrolet brands to access their level of readiness tore-establish the GM model range in the minds of consumers, Mario Spadenberg said that no serious automaker can undermine the potentials Nigeria offers in Africa which makes the country a preferred cash-cow of choice for automakers.
In his words, “GM as a serious and committed car manufacturer would continue to study events as they unfold in respect of the new automotive policy. We at General Motors support federal government’s decision to come up with an assembly plant as long as such capital intensive venture will be given every necessary support by government.”
According to him, the federal should back the intended policy with the required legislative, executive and legal backing. He noted that setting up an assembly plant or bringing back moribund one’s back on track is not a process that will be quick, or easy to achieve, but one that will painstaking and takes longer period of years to achieve.
He cited countries like Malaysia, China and India as some of the countries where the automotive protective policy have been introduced in the past to discourage used car or parallel imports syndrome, which today have produced tangible result with high turn-over of locally assembled cars in those countries.
Government in those countries he noted increased tariffs on vehicles not manufactured in those countries which made it more costly and therefore less attractive for consumers. GM said it will invest heavily in the automotive business because of its interest in increasing interest on getting high market share locally as a result of the growing opportunities in Nigeria’s market which he described as huge.
Mario Spangenberg recalled that about two years ago, before GM’s final closure of operations in Nigeria, it held meetings with the government on the need to provide institutional framework that would encourage the carmaker continue to assemble vehicles. Later, the government made a U-turn and came up with the new automotive policy after GM had already shut down.
Speaking generally on the model range, Spangenberg said, all our vehicles and spare parts sold throughout GM network are covered by warranties. “We are present in 39 areas where we use our first-rate knowledge of the local terrain to provide our partners with ideal conditions for entering often-fragmented market.”
He said on separate meetings with CFAO Intermotors that he was confident that CFAO Automotive ensures that vehicles and spare parts are readily available. And that on the other hand, he was delighted to know that Koncept Autocentre Limited is putting dealership structures where the GM model range will be sold at strategic locations nationwide.
He revealed that General Motor’s network is part of an efficient supply chain and we have invested $30million in spare parts depot in South Africa so that both Isuzu and Chevrolet brands and spare parts are readily available across the continent to satisfy customer requirements everywhere.
“We are constantly striving to be better and this is why we continually invest in expanding and modernising our points of sale, training our sales and technical teams, and upgrading our plants to boost performance.” Spangenberg noted.
Making a remark during the CEO’s visit to the outlet, Olivier Levigne, managing director, CFAO Nigeria, said Isuzu offers an extensive product line-up able to meet customer’s need. “They are robust and dependable, incorporates latest technologies and high quality materials as well as powerful and efficient engines.”
On the other hand, Victor Eburajolo, group deputy managing director, Kewalram Chanrai Group, accompanied by Gaurav Kaul of Koncept Autocentre Limited reiterated the readiness of the dealership to take every GM’s product range to higher level as according to him, “Isuzu has found a new home.”
He promised that under Koncept Autocenter Limited, that nostalgic feeling and hospitality associated with the Isuzu brand in Nigeria in the past will be rekindled into the minds of prospective new car buyers and erstwhile lovers of the legendary American automotive nameplate.
Founded in 1916, Isuzu has the longest history of any Japanese vehicle manufacturer. From superb safety and convenience to outstanding power and durability, the brand can meet the challenges of tough jobs cost-effective operations. The tough performing trucks bring the benefits of advanced engineering to every aspect of vehicle design and set a new global standard of excellence.
Mike Ochonma
