Peugeot Citroen has disclosed plans to initiate assembling of cars in Nigeria by the first quarter of 2019 via a partnership with the Chairman of the Dangote Group, Aliko Dangote, and five state governments.
“The first vehicle should be out by the first quarter of 2019. We are hoping that the factory will be completed by December. The land has been identified…We have put advert for a contractor that will build the factory,” said the adviser to the Governor of Kaduna state, Jimi Lawal. He stated today, 6th of June 2018, that the partnership with Peugeot Automobile Nigeria Limited, located in Kaduna, would assemble 3,500 units in its first year and ramp up to about 10,000 units.
Peugeot had said it would build its 301 sedan in small volumes at a plant operated by PAN, adding that the vehicles would be produced from semi-assembled kits of parts shipped from its plant in Spain. He also stated that Nigerian production of additional models such as the 308 compact and 508 might follow.
Lawal stated that Aliko Dangote will hold a major stake in the partnership which also is with five other northern states, while Peugeot Citroen will own 10 per cent. Dangote, in agreement with other two states and the Bank of Industry, had made a bid to acquire a major stake in PAN after the Asset Management Corporation of Nigeria sought to sell some of the assets it bought in the wake of the banking crisis of 2009. Lawal said PAN would start with N3.5bn ($10m) of equity and working capital of about $5bn, adding that the company would raise additional capital.