Honda begins production of Accord brands in Nigeria

Honda Manufactures in Nigeria

Honda Manufactures in Nigeria

Image: Honda Nigeria

Good news for Honda brand lovers in Nigeria and the manufacturing sector as Honda Motor Company commences the building of Sedan cars (Accord) in Nigeria.

The company said it has begun the building of cars in Nigeria by retooling part of its factory that previously made motorcycles.

Honda’s new chief executive, Takahiro Hachigo, said this at his first news conference since taking the helm in June, on Monday in Tokyo.

Hachigo said the company, which began production in July (this month), planned to produce 1,000 of its Accord sedans annually at the plant in Nigeria.

The new chief executive said Honda would boost the production if the local market grows, adding that the plant would service other African countries.

This is coming as part of the former administrations goal of bringing car manufacturers to Nigeria to help boost the country’s economy and reduce unemployment. The Federal Government of Nigeria last year decided to increase the tariff paid by car importers purchasing new vehicles to 70% as a measure to encourage vehicle manufacturers to build their manufacturing plants in Nigeria.

Meanwhile, speaking on the recalling of its over 2 million cars due to its faulty air bag, Hachigo says it has no plans for now to provide financial aid to Takata Corp, the air bag supplier at the centre of a costly global air bag recall.

However, Hachigo said Honda had set aside enough to cover the cost of recalling over 2 million cars with potentially faulty air bag parts made by Takata.

“We have money budgeted for quality-related costs, as we did last year, and we think we can respond within this allocated amount,” Hachigo told reporters.

Last month, Honda revised its operating profit for the year ended March to 606.88 billion yen ($4.92 billion) from the 651.68 billion yen it reported in April to account for expanded recall costs.

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Francis Nwokike

Francis is a Passionate Social Entrepreneur. Love discussing new trends in Business and Marketing. A Startup consultant. A good listener. Love to help that your business grow.

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