VW Plans to Expand in Ghana and Nigeria

Volkswagen AG has signed memorandums of understanding to assemble vehicles in Ghana and set up an automotive training academy in Nigeria.

In Ghana, VW will erect an assembly plant, develop a sales and service network and open a facility to train production and sales workers. VW also will study the viability of rental, car-share/ride-share and shuttle services in the west African country.

In return, Ghana has pledged to develop a national industry policy that will incentivize vehicle production in the country, in part by favoring government procurement of locally made vehicles.

In Nigeria, VW plans to eventually make Nigeria an automotive hub for western coastal Africa. As a first step, the carmaker says it will partner with the German government to open a training academy in the country that offers broad technical training in a variety of automotive skills. Nigeria’s government has pledged to set policies to foster local production and distribution of passenger cars.

VW offered no timetable for programs in either country. But it underscores its commitment to the African sub-Sahara and notes the region has removed “final hurdles” the will enable an auto industry to develop there.