By Jonah Nwokpoku, with Agency report

American automobile manufacturer, Ford Motor Company has announced plans to start assembling its best-selling Ford Ranger pickup truck in Nigeria by October, 2015.

Ford said the move is part of its expansion in Africa and the Middle East. The Nigerian assembly plant which will be in partnership with the Ford dealer, Coscharis Motors Limited is the first outside South Africa, where Ford produces the Ranger for 148 markets.

Priority market

The President/CEO of Ford Motor Company, sub-Saharan Africa, Jeff Nemeth said: “Nigeria is a priority market for us in sub-Saharan Africa. Depending on how Nigeria develops over time, we are potentially looking at using our Nigerian plant to service West Africa,” he told Reuters news agency on Tuesday.

He added that, “The auto market in Nigeria has huge potential but retails only a small amount of new vehicles annually.”

According to him, “The sector is dominated by imported used vehicles, while limited financing for consumers to buy new vehicles and the absence of an industrial policy that would encourage suppliers to set up in Nigeria have stunted growth.”

The plant located in Ikeja, Lagos will assemble the Ford Ranger using parts and components imported from South Africa. The plant will have the capacity to assemble up to 5,000 units annually, which will be sold in Nigeria.

Ford produces 85,000 units each year in South Africa, which are sold across 24 African countries.

“It would take between one to two months to take an order, build it and deliver it within the country. If you order from overseas, it would take between four to six months,” Nemeth said, noting that “the benefit of the Nigerian plant was being close to its customers.”

Recall that other automakers like Renault-Nissan, Kia Motors and Volkswagen have also announced plans to assemble vehicles in Nigeria, immediately after the federal government unveiled an auto policy to regulate auto importation into the country.