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Strategy Volkswagen expects Nigerians to start buying cars as economy recovers

The economy recession saw the sales of Volkswagen vehicles drop to less 40 units last year

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Volkswagen expects Nigerians to start buying cars as economy recovers play Thomas Schäfer, Managing Director of Volkswagen South Africa (Volkswagen Inside)

Volkswagen Automobile Group said it is expecting Nigerians to start buying cars and increase sales as the economy of Africa’s biggest oil producer recovers.

Thomas Schaefer, the head of the company’s South African operations said in an interview with Bloomberg on Monday, May 14, 2018.

Nigeria’s economy, unlike many African oil exporters, is rebounding as the global price of crude oil rises again. The economy recession saw the sales of Volkswagen vehicles drop to less 40 units last year.

Now that the oil price has been recovering, hopefully, this situation will reverse and we can assemble and see a few hundred cars in the next year or so,” Schaefer told Bloomberg at a conference in the Rwandan capital, Kigali.

In July 2015, Volkswagen reopened its Nigeria auto assembly factory on the Badagry Expressway, Lagos. The reopening was made possible through its partnership agreement with a private auto company, the Stallion Group for the assembly of the Volkswagen brand of vehicles in the country.

The company is also ready to start producing models including the Polo, Passat and Teramont at an assembly plant in Rwanda in June 2018, few years after doing same in Kenya.