Local Car News #Update
Peugeot Citroen PSA has entered into a partnership deal with the Dangote foundation chairman and C.E.O. Aliko Dangote alongside other five northern state government in order to re-start assembling of cars by the first quarter of 2019 in Kaduna.
The partnering agencies under the Peugeot Automobile will assemble 3,500 units in its first year and ramp up to about 10,000 units, said Jimi Lawal, adviser to the governor of Kaduna, the north western state where the plant will be located. He further said that Dangote group will hold a major stake in the joint venture while Peugeot will hold a 10 percent stake and operate the plant.
Lawal said PAN would commence the project with N3.5 billion ($10 million) of equity and working capital of about $5 million, adding that the company would later raise additional capital. He further stated that Dangote and other state governors have visited France to endorse the agreement, adding that Peugeot would assemble three brands in Nigeria and target West African markets for export.
“The first vehicle should come out by the first quarter of next year. We are hoping that the factory will be completed by December, the land has been identified and we have advertised for a contractor that will build the factory,” he said
Peugeot also said it would build its 301 sedan in small volumes at a plant operated by PAN, the vehicles will be produced from semi-assembled kits of parts shipped from Peugeot’s plant in Spain with the Nigerian production of additional models such as the 308 compact and 508 following suit later.