AMIDST pomp and ceremony, the Dangote Peugeot Automobiles Nigeria, DPAN, Limited, has teed off its assemblage of vehicles in Nigeria. The development is another milestone in the country’s car manufacting sector where the Innoson Vehicle Manufacturing Company, makers of the IVM brand, holds sway.
DPAN launched the new assemby phase with the release, into the Nigerian market, of a few of its new brands, including the Land Trek, 3008, 5008 and 508, built at the company’s newly constructed Green Field Assembly Plant in Kaduna, North West Nigeria.
The Dangote conglomerate went into vehicle production about five years ago when it added former Peugeot assembly plant to its list of acquisition. The deal excited many Nigerians as it was seen to have the potentials to, among others, reduced the nation’s dependent on foreign products and generally impact positively on the economy.
However, the group’s acquisition of the plant follows its alliance with both Kaduna and Kebbi states in conjunction with the Bank of Industry, BOI. With the alliance, Dangote bidded for a majority stake in Peugeot Automobiles of Nigeria, PAN, being already under receivership with Asset Management Corporation of Nigeria, AMCON, following the decision by the asset recovering agency to find suitable investors to buy off some of the assets after the federal government sold off its controlling stake in the company in 2006.
AMCON acquired the company’s controlling shares in 2012 and following which it also took over the company’s debt. However, the agency found itself struggling to keep the outfit in business prompting it to cry out for new investors just so that the company may have a new lease of life. Dangote stepped in and made a bid with an injection of €52 million euros, about N21 billion, lifeline into the company.
Yet, the injection didn’t quite fix the slide forcing the business mogul to quickly go into a joint venture agreement with Peugeot of France, PSA Groupe, which resulted in the formation of the Dangote Peugeot Automobiles Nigeria Limited, DPAN.