Dana, KIA Partner To Assemble Cars In Nigeria

As a result of the Fed
eral Government’s new national automotive policy which raised the import duty on fully built cars from 22 per cent to 70 per cent, South Korean motor manufacturing company, KIA Motors, has signed an agreement with Dana Motors Limited to set up a plant in Nigeria.
The rise on import duty on fully assembled cars into the country was to encourage local production of vehicles and discourage importation.
In a statement signed by the Marketing Manager of Dana Motors, Mr Kayode Adejumo, said Dana sealed the vehicle assembly pact with the management of Kia Motors of Korea, recently.
Adejumo said the pact was to exhibit its commitment to the development of the automobile industry in the country.
Speaking at the signing ceremony, the leader of Dana management and Managing Director of the Company, Mr Jacky Hathiramani said the project would help promote the development of the automobile industry in the country and drive the component parts required of international standard at competitive prices, adding that it would set a good example for other auto firms to follow in assembling their cars in Nigeria, with the state-of-the-art plant.
He said it was planned to have minimal adverse effect on the safety and health of the workers as, “Dana motors aims to surpass customers’ expectations and with the growing population of Kia cars across Nigeria, there is need to have a better support for maintenance by upgrading facility and investing in people,” Hathiramani noted.
According to him, the arrangement would also lead to creation of more jobs, skills acquisition and ultimately the production of cost effective vehicles, stressing that the new policy is part of President Goodluck Jonathan’s Industrial Revolution plan and the National Enterprise Development programme.
“The president’s plan is commendable and fully supported by Dana Motors and Kia, as it is setting the stage for a new era of industrial, micro, small and medium Enterprises development in the country,” he managing director said.
In his speech, the Director of National Automotive Council (NAC) who was represented by the Director of Policy and Planning in the council, Mr Lugman Mamudu commended Dana management for the bold step taken to establish a vehicle assembly plant in the country which would create employment and a wide range of technological advancement in manufacturing industry.
Mr. Homer Kins signed on behalf of the Korean car manufacturing Company, Kia Motors Limited.