Stakeholders in the automotive industry have urged government to ensure it supports local auto assemblers by way of patronising their products and services.
Chairman, Automobile and Allied Sectoral Group of the Lagos Chamber of Commerce and Industries, LCCI, Dr. Oseme Oigiagbe, noted that though low patronage was a factor adversely affecting the local auto industry, the foreign exchange crunch is also a major issue.
He called on the government to encourage local auto assemblers through the 2016 budget by way of ensuring that they are given priority in patronage against importers of Fully Built Up FBU vehicles.
According to Vanguard, auto industry analyst, Dr. Oscar Odiboh, bemoaned the sorry state of the auto industry, noting that Innoson Motors is only one of the many auto companies that are down-sizing staff.
“The reality on ground is affecting everybody. I know of a company that has sacked half of its work force, some others are busy converting staff from full time employment to contract staff, even when it is against the labour law to do so.
“When government says companies should not down size, how do you want them to pay their staff when you don’t buy vehicles from them?” he asked.