Nissan Follows Volkswagen in Starting Car Assembly in Ghana

Nissan Motor Co. is set to start the final assembly of cars in Ghana, responding to new legislation aimed at turning the West African country into an automotive hub for the region’s 380 million people.

The Yokohama-based company is partnering with Japan Motors Trading Company Ltd., a Ghanaian car dealership, to put together the Nissan Navara pickup in Accra, the capital, Nissan said in a statement Wednesday.

Ghana is offering tax breaks to carmakers and has promised to restrict the influx of second-hand cars, which account for 70% of vehicle imports in a country with barely any local manufacturing. In May, parliament banned the arrival of cars that are more than 10 years old in a bid to lure manufacturers.

Nissan’s announcement comes three months after Volkswagen AG opened its own plant in collaboration with another local partner. Toyota Motor Corp., Suzuki Motor Corp. and Renault SA are among automakers that have said they are also weighing local manufacturing in the country.

The Ghanaian plant will be Nissan’s fourth in Africa, after South Africa, Egypt and Nigeria.