Senator charges auto assemblers on flexible payment plans

Ben Murray-Bruce, a Senator representing Bayelsa West senatorial zone has asked automakers, to implement flexible payment scheme to encourage average working class Nigerians to have access to brand new cars for their day to day commuting.

The Senator who doubles as chairman, Senate Committee on Privatisation and Bureau of Private Enterprise during a visit to VON’s vehicle assembly plant in Lagos, urged prospective local automakers to come up with a flexible and affordable payment plan of 10 per cent down payment, with the instalment spread over seven years, as it is done in the US and other competitive markets.

The lawmaker said that although efforts to encourage made-in-Nigeria vehicle is gaining ground through the Nigerian Automotive Industry Development Plan (NAIDP), the lack of a flexible and affordable payment plan may cripple growth in the sector if not properly addressed.

The effects of the lack of finance scheme and current economic slump remain bane to sector development, as the Managing Director of the organisation; Tokunbo Aromolaran disclosed that demand for cars had systematically dropped from 600,000 last year to 350,000.

He said the organisation’s target is to make Nigerians own and ride in brand in cars. The managing director revealed  that though the plant has the capacity to produce 45,000 units of cars in one shift and 90,000 in two shifts, it only produces 4,000 units due to the economic situation.

He said the number of vehicles produced is so small, with the overhead running cost of the establishment coming back on the few vehicles produced which does not add to improve the company’s corporate bottom-line. Aromolaran urged the Senators to come to the aid of local auto manufacturing companies, by shutting the doors against importation of fairly used vehicles.