Assembly Plant Not For Nigeria Now – Toyota
 27th OCT 2006

Citing inadequate sales volume, Toyota Nigeria Limited (TNL), has ruled out the possibilities of establishing an assembly plant in Nigeria for now. The Managing Director of TNL, Mr. Ayodele Koffi Sagoe, explained that with the current level of sales, it would be difficult for Toyota Nigeria to sustain an economic of scale required for an assembly plant. Sagoe, who spoke at an event in Lagos, to kick start Toyota's 10th anniversary in Nigeria said: "If you have the opportunity of visiting any of the plant in Japan and other places, you will possibly understand why an assembly plant is not feasible for now. With the current level of sales, which is above 10,000 units, we don't have enough muscle to achieve and sustain an economic of scale required for this type of business."

The chairman of TNL, Chief Michael Ade-Ojo said the establishment of an assembly plant was receiving "very serious study". Ade-Ojo while tracing the genesis of Toyota in Nigeria said the product initially had difficulty in market penetration due to "general bias against Japanese products." Toyota, according to Ade-Ojo later gained acceptance through heavy advertisement coupled with promotion.

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