Why The Automaker Is Not Selling
By Fola James
More details are emerging why state and federal governments in Nigeria have refused to patronize Innoson Motors, the indigenous auto maker owned by businessman, Innocent Chukwuma.
Nigerians have been calling on government at various levels to buy automobiles from the automaker to encourage the local industry. Doing so will also lead to job creation, they say.
But while automakers from Asia and Europe remains the darling of the public and private sector in the country, failure to patronize Innoson, the magazine has learned may not be unconnected with the automaker’s refusal to open up its business across the country.
Some government officials really want to buy from Innoson because of fear that there are no repairs centers where the vehicles could be repaired it they break down.
This is because the automaker is yet to set up service centers across the country, according to observers.
Recently, the Oyo state government had reached out to the automaker on how to supply the government with cars and other vehicles, but the arrangement was cancelled after the government found out that buying such vehicles could end up a waste of public funds.
What the government wanted to do was to buy assorted vehicles from the automaker, including buses for its public transport company.
A top official in the state told the magazine that Governor Seyi Makinde had directed that vehicles be purchased from Innoson for all state functionaries and senior officials in the state.
“But the deal failed after it was discovered that Innoson has not service centres in the state where the vehicles could be repaired in case they are damaged,” the officials said.
He explained further “I was the one that put a call through to Chief Chukwuma after the governor directed me to do so. This is because Governor Seyi Makinde is very passionate about promoting made in Nigeria goods.”
He said the deal would have led to the purchase of many utility vehicles for the use of the state, including “arrangement to buy for security agencies as part of effort to assist them to combat insecurity in the state.”
Over a hundred vehicles recently were purchased by the South West state governments for police and other security agencies as part of effort to combat kidnapping and other security challenge facing the area.
“The initial plan was to purchase some of these cars from Innoson Motors. But after due consultation, the matter was shelved,” a close source told the magazine.
Former Governor Peter Obi was among the very first top government officials to buy vehicles from Innoson Motors.
Others have followed suit, including the purchase for the Federal Road Safety Commission, FRSC by the federal government.
But close watchers told the magazine that it has become very difficult to order more Innoson vehicles because there are no maintenance centres across the country where the cars could be repaired.
This development has led to loss to government because the vehicles were not used to satisfaction before they are abandoned over maintenance issue, a government source told the magazine.
“For instance, there are local mechanics that can repair those vehicles from Japan and Germany, apart from high profile service centres across the country,” the sources stated.
Recently, GAC motors entered into partnership with Elizade Motors in Lagos for the maintenance of vehicles purchased from its factory.
“Innoson Motors can also do this to expand its franchise and make its vehicles portable, durable and easy for purchasers to use,” a top government aide from one of the states in the North, whos supervises such matters for his state governor told the magazine on Friday.
The magazine has been trying to get Innoson Motors to respond to the issue.
