Ghana’s VW CEO Calls for Financing Framework to Encourage Locally Assembled Vehicle Sales
Mr. Jeffrey Oppong Peprah, CEO of VW Ghana, advocates for a financing framework to increase the patronage of locally assembled vehicles. He highlights the challenges posed by cash purchases and high interest rates, which greatly limit access to new vehicles. The proposed financing model aims to stimulate economic growth, reduce reliance on imported cars, and enhance purchasing options for Ghanaians.
Mr. Jeffrey Oppong Peprah, Chief Executive Officer of Volkswagen (VW) Ghana, emphasized the necessity for a financing framework aimed at enhancing the adoption of locally assembled vehicles. He pointed out that current market dynamics, dominated by cash purchases, impede access to new vehicles across the country, stating the importance of creating a more flexible purchasing model to benefit consumers.
During the unveiling event for the new Volkswagen Touareg in Accra, Mr. Peprah highlighted the vehicle’s impressive specifications, including a robust 3.0 TSI V6 engine with 250 kW, an 8-speed automatic gearbox, and 4motion all-wheel drive. The Touareg also showcases innovative features such as IQ Light HD matrix headlights and LED taillights, designed to suit Ghana’s unique terrain.
Mr. Peprah noted that the prevailing trend of cash payments restricts many Ghanaians from comfortably acquiring vehicles, as individuals often have to save for extended periods to make purchases. He indicated that high interest rates on traditional loans, currently exceeding 24 percent, further limit the purchasing ability of the average citizen, leading them to prefer imported used cars instead.
Currently, the Automobile Association of Ghana is pursuing dialogue with the government to develop a government-incentivized loan system that would offer lower interest rates and make new, locally assembled vehicles more accessible. Mr. Peprah reinforced the need for collaboration among the government, banks, and insurance companies to create affordable financing solutions for potential car buyers.
The proposed financing framework is expected to stimulate the automotive value chain in Ghana by generating job opportunities and fostering economic growth. Mr. Peprah believes that providing a pathway for longer-term payments will benefit Ghanaians aspiring to own vehicles, enhancing the native industry.
Moreover, he expressed his belief that reducing dependence on used salvage vehicles, which raise safety and environmental concerns, is essential. By facilitating access to locally assembled cars, the financing framework could potentially diminish the market for hazardous imports and bolster the economy.
In summary, Mr. Jeffrey Oppong Peprah has identified a critical need for a financing framework to promote the adoption of locally assembled vehicles in Ghana. By addressing current purchasing challenges and fostering collaboration among various sectors, this initiative could enhance accessibility, stimulate economic growth, and reduce dependence on imported vehicles. The success of such a framework could significantly benefit the Ghanaian automotive market and its consumers.
Original Source: gna.org.gh
