Peugeot Automobile Nigeria (PAN) moves to import Tokunbo cars

Segun Olatunji, Kaduna


IN a desperate move to keep afloat, the management of the only surviving automobile assembly plant in the country, Peugeot Automobile Nigeria, has unveiled plans to embark on massive importation of used cars into the country.

[img]http://odili.net/news/source/2010/feb/25/punch/images/pix20100225254939[1].jpg[/img]
Tokunbo cars



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The PAN management explained that the importation of such cars, otherwise known as Tokunbo, would satisfy the needs of Nigerians who could not afford brand new cars.

The company said that since there was a large market for used cars in the country, there was nothing wrong if PAN imported and certified such vehicles for the use of Nigerians.

The company's Managing Director, Dr. Haroun Aliyu, said at a news conference held at the ongoing Kaduna International Trade Fair that before the importation of such vehicles, they would be certified by the manufacturers, who would also make available the detailed history of the vehicles to prospective buyers.

Aliyu argued that Nigeria had a large market for used cars, adding that even in Europe, people patronised used vehicles more than the brand new ones.

"If ownership of Tokunbo cars is the problem of Nigerians, we have plans to bring what we call certified second hand vehicles. It is good as it is done globally and not the road-side Tokunbo market that we have where you do not have the history of the vehicle.

"The certified second hand cars, which we are working on to see how we will launch it in Nigeria is for us to bring in cars that are used, but are recertified by the manufacturers, with a label.

"If you buy a car with a label from any of the networks, it is as good as buying a new car because you have access to all the information as well as all the history of the vehicle and you can be supported by the brand," he said.

The PAN boss expressed regret that government had not been encouraging local automobile manufacturers.

He stressed that globally, governments usually encouraged local manufacturers through the imposition of higher tariff on imported finished vehicles, citing the example of the United States of America, which raised the tariff on imported tyres to encourage the growth of local manufacturers.

Aliyu argued that it was wrong for any government to open its borders to all manners of imported goods in the name of free trade.

The PAN boss also disclosed that the company had plans to diversify its operations by setting up subsidiaries, including a tractor assembly plant that would cater for the agricultural sector through the production of tractors and other agricultural implements.

Others, he said, included a leasing company that would address the needs of poor Nigerians, who could not afford to buy new cars; a PAN learning centre that would teach courses in car production as well as French, German and Arabic languages.

Aliyu added that the company planned to establish sales outlets across the country where genuine spare parts would be sold at moderate prices as part of the measures to check the sale of fake parts.