Ford begins Ranger pick-up truck production in Nigeria

Three months after the first announcement of a plan to establish a Ford assembly plant in Nigeria was made inside the International Convention Centre in Sandton, South Africa, between Ford Motor Company and Coscharis Motors of Nigeria, the first locally assembled Ford Ranger pick-up truck has been launched in Nigeria.

The development follows the on-going automotive policy of the Federal Government which seeks to encourage local assembly of vehicles in Nigeria and discourage indiscriminate importation of used ones.

Government’s policy aims to grow the local market, bring down the cost of new vehicles, create jobs and save scarce foreign exchange.

The first Ranger to come off the assembly line in Nigeria was built in an existing facility with Coscharis Motors facility in Ikeja, Lagos. The Ford Ranger trucks will be assembled at a semi-knocked-down level, using body parts and components imported from Ford’s Silverton Assembly Plant in South Africa. 

The semi-knocked down (SKD) operation in Nigeria was established in partnership with the local Ford dealer group, Coscharis Motors Limited.

Although the value of investment was not disclosed as at the time of filing this report, Jeff Nemeth, President and CEO Ford Motor Company of Sub-Saharan Africa region  said, the facility would accommodate one shift and produce an initial 10 units per day for the Nigerian market, creating approximately 180 direct and indirect jobs. Over time, this will gradually expand.

Nemeth stated that new assembly operations, even on a small scale, have positive knock-on effects in the local economy and workforce. In line with the operating procedures for Ford plants around the world, Ford will send experienced employees to Nigeria to assist with implementing the Global Ford Production System, which focuses on the highest standards for safety, quality and delivery.

According to him, “The main driver behind Ford in Africa is affordability. Africa is one of the youngest markets in the world and presents a huge opportunity in terms of consumption,” he added. “The buying power of the African consumer is on the rise as the continent’s middle class increases exponentially. Despite infrastructure challenges, Africa has demonstrated impressive returns on foreign direct investment.”

A unified growth strategy for the continent, with the formation of the new Middle East and Africa business unit in 2014, has also enabled Ford to consolidate its efforts in Africa. “Ford has taken steps to support its dealers in Africa, including after sales support and ensuring parts availability,” Nemeth says.

The Ford Motor Co boss also revealed that the automaker is looking at training and skills transfer opportunities to enhance the continent’s skills base. In Nigeria, this includes a training programme co-ordinated by Coscharis Motors and the Lagos State Government, including hands-on modules for technicians.

Nigeria is a significant market in Ford’s Sub-Saharan Africa (SSA) region and accounts for a solid percent of the regional sales – the reason why Ford is committed to increasing market share in Nigeria, and other key African markets in the future. Ford’s commitment to Nigeria, he noted, is stronger than ever. “We expect to see continued growth in the market as we move forward with plans to expand our outputs and launch new products.” , Nemeth added.

Cosmas Maduka, president of Coscharis Motors, stated that the local assembler has worked hard and moved quickly to turn the dream into a reality. He said, “Today marks an important milestone when the cogs in the wheel really start to turn, not only for Ford in Nigeria, but in general for the Nigerian industry, which is receiving a much needed boost towards industrialisation and the development of the automotive industry.

“We are committed to setting the bar high, and establishing world-class, best practices in Nigeria that every other industrialist will have to be judged by. This is a major milestone for us and marks another first in the evolution of our company.” He concluded.