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Nissan to Form a New Regional Business Unit for Africa

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December 3, 2020
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Nissan to Form a New Regional Business Unit for Africa

By: Ashwathy Nair

  • To boost manufacturing capacity and penetrate undeveloped new car markets, Nissan is setting up a new business unit.
  • A reorganization of the company’s disparate operations is marked.
  • A hope for carmakers to take advantage of the African Continental Free Trade Area.

A Japanese automotive group, Nissan is all set to build a new African regional business unit as it strives to increase its production capacity and penetrate one of the world’s largest immature new car markets.

A reorganization of the establishment’s disparate operations on the continent is being marked by the move in order to bring them within one entity that is headed by Mike Whitfield. Previously, in Egypt as well as in South Africa, Mike has served as a managing director of Nissan’s unit.

In a statement, the company stated that “Beyond internal operating enhancements, this also puts Nissan to focus on the massive opportunity that is being presented by Africa to the organization globally.”

Based on the data of industry, there is a rise in the population of Sub-Saharan Africa and household incomes.

In South Africa, most of the carmakers are focused towards manufacturing and sales – most developed economy of the continent – accounting for 85 per cent of Africa’s new car purchases.

Nissan has been pushing African governments, along with competitors such as Toyota, Volkswagen, and BMW, to grant conditions that benefit local assembly and production while curbing imports of cheap used cars.

Carmakers also hope to take advantage of the African Continental Free Trade Area, which is required to enter into force early next year, reducing tariffs and promoting the movement of goods between their member states.

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