Tag: auto

  • Threat of tariffs loom large for auto, tech

    Threat of tariffs loom large for auto, tech

    Auto and tech giants showing off their latest innovations at the CES trade show in Las Vegas this week will encounter a barrage of questions on a topic that is usually not central to the consumer-focused event: tariffs.

    The gathering is one of the largest of manufacturers, analysts and suppliers in the United States and comes days before the inauguration of President-elect Donald Trump, who has pledged big tariffs on imports from Canada, Mexico, China and other U.S. trading partners. This has sparked concerns about spiraling costs for businesses as well as consumers.

    “This will be a hot topic,” said strategy consultant Deborah Weinswig, CEO of Coresight Research, who said the proposed tariffs have come up in almost every conversation she has had with clients ahead of CES. “This is going to be something that definitely senior leadership is going to have to address.”

    CES 2025, formerly known as the Consumer Electronics Show, runs January 7 to 10 and is used to debut products ranging from new automotive technology to quirky gadgets, as well showing new ways to use artificial intelligence.

    Among the highlights this year is a keynote speech from AI chip giant Nvidia’s celebrity CEO, Jensen Huang.

    While AI will still be the buzzword on the show floor, the issue of tariffs will be top-of-mind in policy sessions, press conferences and on the sidelines.

    Read Also: Economy: Will Nigerians be poorer in 2025?

    Companies may be asked about changing suppliers and moving production to the United States to mitigate supply-chain disruptions – moves that take time and are expensive, analysts have said.

    Honda (7267.T), for instance, sends 80 per cent of its Mexican output to the U.S. market. It has warned it would have to think about shifting production if the United States were to impose permanent tariffs on vehicles imported from the country.

    Nearly half of new cars sold in the U.S. as well as a significant share of parts on the rest are made elsewhere, according to estimates from Edmunds. European and American carmakers could lose up to 17% of their combined annual core profits if the U.S. imposes import tariffs on Europe, Mexico and Canada, according to an S&P Global report.

    In addition to tariffs, Trump has said he plans to begin rescinding policies meant to promote the adoption of EVs.

    Many suppliers, already struggling because of weaker than expected EV demand, are operating on “razor-thin” margins and will have to radically adapt their cost structure this year in the face of potential tariffs, said Felix Stellmaszek, global leader of the automotive and mobility sector at Boston Consulting Group.

    “Add to this supply-chain uncertainties and labor shortages and it’s clear that many suppliers are in dire straits,” he said. “The scenario planning is in hyper mode.”

    Between responding to potential tariffs, automakers and their suppliers – including Honda (7267.T), opens new tab, Toyota (7203.T), opens new tab, Bosch, and Continental (CONG.DE), opens new tab – are expected to provide updates on their race to develop cars with software-driven enhancements, self-driving technology and AI that makes vehicles easier and safer to drive.

    Among the speakers will be Delta Air Lines (DAL.N), opens new tab CEO Ed Bastian, Volvo Group (VOLVb.ST), opens new tab CEO Martin Lundstedt, Panasonic (6752.T), opens new tab CEO Yuki Kusumi, and X Corp CEO Linda Yaccarino. Every industry is likely to face questions about tariffs.

    “’How are companies going to work together from a supply-chain perspective?” said consultant Weinswig. “How are we going to mitigate rising costs? Can technology solve this? There’s still so much that’s not known, we’ve seen that everyone’s trying to figure out every possible scenario.”

  • ‘Auto industry in limbo over policy delay’

    ‘Auto industry in limbo over policy delay’

    Nigeria’s automotive industry is in a state uncertainty due to prolonged delay in enacting the required law to give investors the right direction.

     Head of the Auto Sectoral Group of the Lagos Chamber of Commerce and Industry (LCCI) Mr. Kunle Jaiyesinmi, stated this, noting that the industry was being allowed to stagnate and made it difficult to galvanise the overall development of the economy.

    Jaiyesinmi who is Deputy Managing Director of CFAO Motors, said: “For now we are in limbo. We don’t know what is happening to the (auto industry) policy; whether it’s with the Executive or it has gone to the National Assembly. We don’t have information on the stage that the policy is. I think NADDC is coming up with a stakeholders’ meeting maybe they would give us detailed information on the policy.”

    He lamented that the macroeconomic challenges including the high exchange rates and inflation were adversely affecting vehicle sales.

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    He said: “2024 has provided a topsy-turvy ride looking at the state of the economy. The purchasing power has been so much eroded (due to) the depreciation of the naira (the exchange rate).

    “Prices have risen to a level that most private consumers cannot really afford it (new car). You notice that the major corporates are really suffering. You can imagine how much they lost in terms of exchange rate.

    “So that has really impacted the procurement of new vehicles… We have more of automobile maintenance service rather than new sales.

    “If you look at the market figure, it has so much reduced compared to what we had been having when the exchange rate was around N450, N480. So it’s not been a very good year for automobile business.

    Jaiyesinmi also spoke on the high interest, which is over 33 per cent; as well the recently announced government-back N20 billion auto finance.

  • Auto spareparts body gets leader

    Auto spareparts body gets leader

    Former General Secretary of Ladipo Auto Spareparts Market Association, Mushin, Lagos State, Africanus Ogudoro, was yesterday elected as president-general.

     Ogudoro polled 119 votes to defeat Emmanuel Abochukwu, who got 51 votes.

    Other elected officers include Assistant General Secretary, Amaechi Nneji, Financial Secretary, Valentine Ugochukwu and Treasurer, Michael Eriugo.

    Chairman of the body’s Electoral Committee, Sam Opara, said 26 candidates contested. 

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    On the vacant position of general secretary, he said: ‘Maybe in the next few weeks, a by-election would be held to fill it.’’

    Former President-General, Jude Nwankwo, hailed the election.

  • Auto market gets boost with affordable SUVs

    Auto market gets boost with affordable SUVs

    The Nigerian automobile market has received a boost with the introduction of Jetour, a new brand from the Chery Holding Group.

    It offers top-class affordable luxury vehicles. The automaker said the brand was introduced in response to the market trend and consumers’ demand.

    With the slogan “Drive Your Future,” Jetour focuses on the travel and market segment, and its products are mainly sports utility vehicles (SUVs) for the satisfaction of its users.

     The brand, which is now in the Nigerian market was launched globally in 2018 to provide practical travel solutions for families and individual. Some of the features of the vehicles are unique intelligent driving and energy-saving electric system.

     The models available in the Nigerian market are X70 – Liberty; X70 Plus – Elegance; X90 Plus – Cruise and Dashing.

     Jetour said its vehicles are produced from an intelligent factory that incorporates automation, intelligent customisation, flexibility, scalability, and environmental conservation. Jetour’s goal is also to provide excellent vehicles that demonstrate individuality for today’s young people.

     The brand focuses on core new energy technologies, offering the latest comprehensive energy technology system; battery electric vehicle (BEV) platform and the Plug-in Hybrid Electric Vehicle (PHEV) platform. The core technologies of new energy electric vehicles such as battery, motor, electronic control, and vehicle controller have been independently applied to the different platform models.

     The automaker said its vehicles are powered by one of China’s top 10 engines.

     Jetour is the first Chinese brand with 1.6TGDI turbo-charged engine. It is also considered the first Chinese brand with direct injection gasoline (petrol) engine that meets China VI emission regulations.

    Read Also: Reps committee expresses anger as INEC fails to appear for Budget defence

     The brand comes with the industry’s top power, the strongest Chinese brand. It enjoys the kunpeng power 2.0TGD1, golden power portfolio, 7DCT, strong power 187KW, 390N.m and 100 km/h acceleration < 8 seconds.

     Jetour said: “More than 1,000 people worked on the Kunpeng Power 2.0TGDI engine, which is based on Chery’s 23 years of positive engine development skill, a solid product development system, and an advanced verification system that relies on three main Research and Development (R and D) facilities in Europe and China (Wuhu, Shanghai). The advantages are super energy, ultra-clean, ultra-quiet, ultra-solid, and ultra-light, which took 48 months to develop.

    “It has a maximum power output of 187kW and a maximum torque output of 390N m, and the power reserve is comparable to one 3SL V6 engine.”

     The automaker has four main test locations, and the vehicles undergo 2,000,000km of rigorous verification to ensure industry-leading quality.

     Jetour has a worldwide development strategy and development vision, and its vehicles are exported to many nations globally.

  • NAMA, MAN want govt’s commitment to auto sector growth

    NAMA, MAN want govt’s commitment to auto sector growth

    Representatives of the newly constituted governing board of the Nigeria Automobile Manufacturers Association (NAMA) have visited the Director-General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir.

    Both stakeholders in the auto manufacturing value chain emphasised the need for better synergy between them on how to move Nigeria’s struggling local automotive industry forward.

    During the visit, led by the Chairman, Bawo Omagbitse of PAN to the MAN House in Ikeja, Lagos, the team sought  the restoration of the hitherto cordial relationship between NAMA and MAN.

    The NAMA Governing Board  members, which include Nunu Diwan of Iron Products Industries Limited and Remi Olaofe, executive director, NAMA expressed the imperative of the local automotive assemblers to get more involved and visible in MAN’s activities and programs.

    NAMA urged MAN to be vocal on policies relating to the automotive sub-sector. Being at leadership advocacy position in promoting growth and sustainability of the manufacturing sector, NAMA said MAN should support the National Automotive Design and Development Council (NADDC) in canvassing the enactment of the 2023 NAIDP Bill, which journey started in 2013.

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    Both parties expressed dissatisfaction at the slow-speed Nigeria’s automotive industry is moving when compared to some other African countries.

    The MAN and NAMA team took a critical look at the Africa Continental Free Trade Agreement (AfCTA), and wondered why Nigeria should not play that leading role as an automotive hub in the African continent considering the large population, rich human capital and economic base.

    The imperative of bolstering local content to complement the sourcing of over 2,000 parts in a vehicle was examined and it was agreed that content development would be driven by the appropriate policy environment.

    In 2013, the Federal Government had unveiled the National Automotive Policy to boost local vehicle assembly and making the industry competitive.

    Ten years down the line, many industry followers and stakeholders are still skeptical that, the policy has been a mixed bag of successes and failures.

    The automotive sub-sector, however, has huge potential for growth and job creation, and with the collaborative actions of all critical stakeholders, the future outlook is positive.

  • Two more people die in auto crash in Ogun

    Barely four hours after an accident on Ogun state stretch of the Lagos – Ibadan expressway claimed 12 lives on Saturday, another auto crash on Abeokuta – Sagamu road, Ogun State, has claimed two more lives.
    The latest accident which occurred at the Siun – Kobape  corridor of the Abeokuta – Sagamu road involved lone Nissan Serena conveying 11 people, including the driver. The vehicle is marked LSD 679 EQ.
    The Public Relations Officer of the Ogun State Traffic Compliance and Enforcement Corps (TRACE), Babatunde Akinbiyi, who confirmed the accident, said 11people were involved with two of them dead while four others were injured.
    Akinbiyi added that the vehicle had burst tyre and crashed when the driver lost control of the wheel.
    According to him, both the injured and the dead have been taken to the General Hospital, Ijaiye, Abeokuta.
  • Auto technicians account for 80% of new jobs, says NATA

    About 80 per cent of new jobs in the country are workers, artisans and other employees drawn from auto technicians across the country, Chairman of Nigeria Automobile Technicians Association (NATA) Lagos State Chapter, Comrade Asiwaju Jacob Omonide-Fayeun has said.

    Omonide-Fayeun said this at the 14th Year edition of Auto Technicians Workshop and Exhibition in Lagos.

    The workshop and exhibition, he said, was conceived as a training programme for auto industry and auto technicians.

    He urged government to give NATA more recognition, saying “we account for over 80 per cent of new jobs in Nigeria according to recent statistics from the Federal Ministry of Labour.”

    According to him, it is also a forum where manufacturers, dealers and distributors of all brands of automobile spare parts and accessories and oil companies impact knowledge to auto technicians on the latest trends in the industry.

    The NATA chairman hailed Mobil Nigeria Plc for its support.

    “Mobil Oil has helped in training over 100,000 NATA members nationwide and they are the sponsor of our annual workshop/exhibition; they deserve our 100 per cent patronage,” he said.

    Omonide-Fayeun appealed Lagos State Governor to allocate land to the group to build modern villages in the state for NATA members, saying “we are tired of incessant demolition of our mechanic villages and at the same time driving us away from streets, roadside and under the bridges without providing alternatives for us. We also find it shocking that the Ministry of Transport has increased our ground rent from an average of N20, 000 to N140, 000 per annum. This is very outrageous and we appeal to Lagos State Government to stay action on this matter while we urgently request for a meeting to resolve pressing issues”.

    NATA National General Secretary Comrade Musa Yahaya said the group is interested in partnering with the Global Sights Services Limited (GSSL) to produce NATA ID Card that would be recognised by Law enforcement agencies, banks amongst others.

    GSSL Managing Director Mr. Dayo Bello assured NATA of their readiness to work with them on the project and ensure that it will promote the image of NATA as an association.

  • Stakeholders seek help for auto industry

    Four years after its introduction, stakeholders have criticised the National Automotive Industry Development Plan (NAIDP) of the Federal Government.

    Speaking in Lagos at a forum organised by the Nigeria Auto Journalists Association (NAJA), Dr Oscar Odiboh, a Senior Lecturer, Covenant University (CU), Ota, Ogun State, lamented the state of the industry, saying that it may collapse unless the government and stakeholders in the sector chart a leeway.

    According to him, the economic downturn, uncertainties and government inactions have crippled the growth of the industry, despite concerted effort to turn the country to a vehicle-manufacturing nation.

    Odiboh, who spoke on ‘Implementation of Nigeria’s auto policy: The way forward’, insisted that industry is divided and may not thrive until the stakeholders collaborate.

    He observed that almost mid-term into the 10-year plan, most of the assembly plants lack international standard to compete globally, and could hardly be called assembly plants.

    He said: “What we have at the moment are not real assembly plants. They are glorified joineries. An average 65 per cent of our assembly operations are manual, while 70 per cent of employees are casual.”

    The National Automotive Design and Development Council (NADDC) and the Federal Government agency saddled with implementing the auto policy have repeatedly claimed that there are over 50 auto assembly plants, to the success of the policy.

    Odiboh, who noted that players in the sector were frustrated through importation rules, added that more than 60 per cent of tools in the sector are manual.

    Calling for budget cars, Odiboh stressed that the sector’s inability to offer affordable vehicles for mass market would keep used market growing to the detriment of the sector.

    He said lack of patronage threatens the survival of the sector as brand new vehicles remained unaffordable for an average middle class citizen.

    Odiboh called on the Federal Government to provide a finance that would enable acquire brand new vehicles, noting that projected objectives might remain elusive unless there is market for brand new cars.

    He said poor power supply, bad roads lack of processed raw materials, lack of long-term financial investment and others were bane of the industry.

    Similarly, corruption, deceptive data from the stakeholder, profit diversion, mutual suspicion, porous borders as well as poor positioning could eventually run down the policy, Odiboh said.

  • Auto import, sales drop by 60%

    The economic downturn has forced a drop in semi knocked down parts (SKDs) and fully built vehicles (FBUs) imports by 60 per cent.

    Automobile sales by makers and dealers have also gone down by 50 per cent, with Nigerians focusing more on food and cutting cost on luxuries.

    This situation has pushed automakers into focusing more on after sales, as many Nigerians would rather have their old vehicles maintained than buy new ones.

    Lamenting the situation,Toyota Nigeria Limited (TNL) Managing Director Kunle Ade-Ojo described 2016 as a tough year for the company and the industry.

    He said because of foreign exchange constraints, the level of importation of new vehicles dropped by over 60 per cent between January and September, with retail sales dipping by 50 per cent.

    With fears that the forex constraints may extend to 2017, the Toyota boss said corporate bodies who were big buyers of vehicles have resorted to cost-cutting measures to remain in business.

    “Prices of vehicles had doubled as a result of the forex constraint. As auto companies, we buy forex at black markets to increase turnover and avoid loss. But Toyota in Nigeria, we are built on a solid foundation and years of planning.

    “We have also adopted cost-cutting measures and all these are helping us to absorb the economic shocks now,” Ade-Ojo told newsmen last week during the company’s annual press briefing.

    Local automobile assembler Stallion Nissan Motors (Stallion NMN) has also reportedly scaled down its operations for some models due to difficulty in importing SKDs. Its spokesman Manny Philipson said auto makers are sharing “in the gloomy situation of the market.”

    His words: “Automakers can’t import SKDs and demand has shrunk. Nigerians now have very low disposable income and whenever disposable income is low, demand for vehicles also goes down. People will continue to use the old vehicle they have and do not buy new ones.”

    The automakers are now focusing on after-sales services. Ade-Ojo said despite maintaining a four per cent rise in market share in 2016, the company would focus more on after-sale services by January 2017.

    He added that this is bearing in mind that most corporate bodies and government agencies, which formed the largest chunk of its clientele, would use their vehicles much longer.

  • Auto deal gone awry

    A media agency, Starcom Media Services, is battling auto giant R.T Briscoe Ford for allegedly selling it faulty vehicles. The case has been taken to the Consumer Protection Council (CPC) and the Standards Organisation of Nigeria (SON), writes ADEDEJI ADEMIGBUJI.

    Brand switching is a common phenomenum in marketing. Commonly referred to as brand jumping, analysts say it is  the process of switching from the routine use of one product or brand to the steady usage of a different but similar product. Much of the advertising process is aimed at encouraging brand switching among consumers, thereby helping to grow market share for a brand, or a set of it.

    However, experts believe that convincing consumers to switch brands is a difficult task.To encourage switching brands, advertisers often use price and superior quality, among other factors. Irrespective of strategies adopted by advertisers, consumers often take the final decision based on circumstances beyond the premise of advertisers.

    But in switching to one brand or another, consumers’experience, whether good or bad, come into play. For Starcom Media Services Limited, a media planning and buying agency, the decision to switch from a leading brand to Briscoe Ford seemed to have gone awry.

    The Managing Director, Starcom Media Services Limited, Mr. Ayo Kupoluyi, told The Nation that based on  strong recommendation, his agency decided to explore a new automobile experience. It ordered seven cars from Briscoe Ford Showroom at 20, Mobolaji Bank-Anthony, Ikeja, Lagos, between February and August 2013. Since the purchase, he said the brand experience had not encouraged the company to make further purchase, saying the firm has been asking for replacement  because of various degrees of malfunctioning.

    He said the firm made its stance known in a letter to the Area Manager of Briscoe Ford, a division of RT Brisoce Nigeria Plc, dated November 26, 2014.

    Kupoluyi said: “Starcom Media based on recommendation from someone very close to the Board of your company (Briscoe) opted to change her official cars from a popular competition to Ford and purchased one Focus, 4 Escape, one Edge and one Explorer in 2013. Since then, it has been stories of woes. In particular is the Ford Exporer. The first one had to be changed due to factory fault, or an error that could not be fixed.

    “In less than one and half years, we have had to replace some parts which never happened with the previous competition we moved away from. At a point, the car broke down mid-way and had to be towed to your garage for repairs staying there for weeks. This can’t be the situation with Ford in other countries. Why Nigeria?”

    For instance, in a diagnosis, according to Kupoluyi, which was carried out at Coscharis Service Centre, one of the cars, 2013 ESCAPE purchased on February 25, 2013, had unresolved Airbag Alert fault, brake pad noise, battery, steering rack, AC vent, smoking-back fires, water shortage, steering assistant, fuel pump, injectors, ignition coil and spark plug faults.

    Other cars diagnosed were said to have recorded various faults which, accordingly, have not been resolved by the automobile firm.

    Also, in a letter to the auto firm  dated January 26, this year, Starcom Media also noted that the agency had  reasons to bring all the brands at one time or the other to Briscoe, but while some of the faults had been resolved, there had been no week the agency hadn’t a reason not to visit Cosharis Group or R.T Briscoe for repairs.

    He said further that apart from the Ford Explorer, almost all the cars it purchased have had one major problem or the other.  ”This is very worrisome and disturbing for the pedigree that Ford Company commands outside this shore,” said Kupoluyi.

    However, the agency said it had complained to the Consumer Protection Council (CPC) and Standards Organisation of Nigeria (SON), saying it is regretable that there has been no reprieve.

    “We have reported to CPC, SON but they have not responded promptly. They said they were investigating the issue but we cannot see any result of their efforts. Our correspondent at SON in a terse response via text said the report was for SON’s use unless otherwise directed by the SON Director General,” he said.

    Meanwhile, Starcom is asking for a trade-in for a new car but yet to receive any response in the last two years. “My plea, this time, is very simple. Since I have lost faith in this car due to its perennial faults and inaccurate diagnosis, I am proposing that I trade it in for a more reliable and trustworthy car. In less than two years, we have had more than four major repairs. I no longer feel safe driving this car. I can’t explain the embarrassment and emotional trauma this has caused me, my family and business. I have to make a special request for pool car to move around. I had scheduled to travel on Saturday, but it was cancelled because there was no vehicle. It is unfortunate that this is happening to me who ensured that our Board changed their position on Toyota cars and opt for Ford cars. I feel very stupid telling them my plight,” said Starcom.

    Also, the agency lawyer, Mr. Temitayo Kareem, said: “They (BriscoeFord) should also not forget that the trade in was necessitated by the recurring faults of the vehicle, and not out of choice for a new ride. Hence some consideration should be put into the figures being presented for the new vehicle. This will be presented to the regulator (CPC/SON) as the case may be for mediation/arbitration.”

    CPC, in a response to the agency last January, said it had commenced investigation into the problem, but the agency said the probe was not bringing immediate result.

    Meanwhile, a spokesperson of Briscoe’s Lekki office, Lagos, Mr. Olorunfemi Eguaikhide, said the company had ensured that Starcom media got the required repairs on some of the cars it complained about as covered by warranty.

    He admitted that the company had not been able to get some parts to fix other faults because of scrcity of forex.

    He noted that the auto firm valued its customers and would not do anything to undermine their interest in their brands.

    “When manufacturers give a warranty there are conditions. If you take the car outside authorized dealer you violate the warranty. However, the Explorer in question has covered more than the required mileage. The issue of Ford Focus semi-automatic transmission is a global issue. Ford is meant to address that. But we do what we can within the available resource and expertise to fix complaints related to that.

    “Starcom has given half truth. They have not adopted every level of engagements they should. The reason why there are delays in addressing some of the complaints is because Ford does not have a warehouse in Nigeria. We rely on their central warehouse in Dubai which services some African countries,” he said.

    He also added that some of the cars developed those fault as a result of usage. “You don’t expect a car that has covered 57,000ml not to develop faults. “Therefore, we have done we hat we can within our customer care to address the issues. And once a car has been taken to a third party it no longer enjoys a warranty,” he said.

    While Ford appears to be making lots of effort to address the ill-feelings of its customer, expert believe the bad experience of the customers may continue to linger and prevent repeat purchase, a situation most brands spend huge marketing budget on to prevent.