Auto policy: PAN upgrades to use of CKD in auto manufacturing

A LEADING local automobile manufacturer and distributor of the Peugeot brand, PAN Nigeria Limited, is
set to begin the use of completely knocked down (CKD) vehicle parts in manufacturing of the Peugeot 301 saloon at it Kaduna plant.
  The company has since begun the assembling of the 301 but has been using the semi-knocked down (SKD) parts which has very little local content.
  It is expected that the commencement of car manufacturing with the CKDs will come with a high level of local content, leading to the employment of more people to work at the Peugeot manufacturing plant.
  PAN's spokesman, Mr Musa Bashir, said the company has concluded arrangements to commence the CKD production of Peugeot 301 in earnest. This feat was attained recently when the managing director of the company, Alhaji Ibrahim Boyi, and the PSA Group vice president, Middle East and Africa, Mr Jean-Christophe Quemard, signed a technical agreement that will allow PAN Nigeria to migrate from the SKD to the CKD production.
  It would be recalled that in July 2014, PAN flagged off the local production of Peugeot 301 saloon cars under SKD platform. “The auto policy had provided a strong incentive to re-open industrial production for Peugeot vehicles after many years of in-activity, and attract the full support of Original Equipment Manufacturers (OEMs) partners, Automobile Peugeot (AP) France.
  Speaking shortly after the signing of the agreement, Alhaji Ibrahim Boyi, expressed happiness with the new development, noting that the signed pact was a confirmation of the confidence the PSA Group has in the company. He stated that the mutual relationship between both parties have become more robust and stronger than ever before, adding that the early transition to the CKD operation was in line with the objectives of the National Automotive Industry Development Plan (NAIDP) which encourages local production of vehicles and components in the country.
  “Let me re-affirm the commitment of PAN Nigeria, a leader in the Nigerian auto industry, in realising the objectives of the National Automotive Policy.