DANGOTE GETS LICENCE FOR PEUGEOT PLANT IN NIGERIA

Dangote secures franchise for new Peugeot Assembly Plant in Nigeria

The Peugeot of France group have given franchise to Dangote Group. The franchise allows the group to construct and also operate a Peugeot assembly plant in Nigeria.

The  Dangote-Peugeot Automobile Nigeria Limited DPAN joint venture will own the new assembly plant. The joint venture comprises of Dangote Industries Limited, Kaduna State Government, and also the Peugeot of France PSA Groupe.

This is coming after Dangote Group made an initial bid of ₦11 billion to get majority stake in Peugeot Automobile Nigeria (PAN). The Group is currently inviting members of the public to tender for the construction of the assembly plant. Whose location will be at Dutse, along the Kaduna-Abuja expressway, Kaduna.

Competitors such as Innoson, Toyota, Kia, and Leyland Assembly plant may be in for a tough time. Especially as Dangote sells goods at the slimmest of margins, in favor of quick turnover and revenue from after-sales services.

Also because of partnership with the state government there will be little or no opposition from the state. In addition patronage from the state is guaranteed since they are stakeholders.