Seun Kuti’s claim that Innoson Motors does not produce automobiles has been contested by renowned investigative journalist David Hundeyin.
Assembling parts in-house is not enough, according to Hundeyin; current automobile manufacturing entails international supply chains and specialised procedures.
He emphasised how businesses such as Boeing also depend on international alliances in order to construct aeroplanes.
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Taking to his X Handle, Hundeyin said, “Car manufacture,” like every other industrial process nowadays, is globalized. The days of having 20 different manufacturing processes turning raw inputs into finished output under one ceiling are long gone. Ever since global trade and comparative advantage became a thing after WW2, everyone from BMW to Boeing has integrated complex global supply chains and JIT (Just-In-Time) supply chain management. This means that the 777 Dreamliner Seun Kuti flies to his concerts in Europe and USA is “assembled” in Renton, Washington, after hundreds of parts are manufactured through a complex series of outsourcing agreements with subcontractors across Europe and Asia.”
According to Hundeyin, Innoson Motors, a Nigerian company, does more than just assemble things. Key components like batteries and plastic parts are made close to its Nnewi factory, and about 65% of its auto parts are supplied locally. He stressed that Innoson is different from businesses that only assemble cars from imported parts in that it controls the intellectual property (IP) for its vehicles.
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“There is a world of difference between what Innoson does and the CKD (Completely Knocked Down) and SKD (Semi Knocked Down) assembly operations that the likes of VW and Peugeot have run in Nigeria before. Roughly 65% of IVM parts are sourced locally. All manufacturing processes involving plastic, rubber, electronics, and frame molding are carried out at and within a 100KM radius of IVM’s Nnewi factory. For example, Union Auto Manufacturing, a subsidiary of @IbetoGroup, manufactures the batteries used in IVM cars. Another example is Innoson Technical Co, a subsidiary of Innoson Group, which manufactures all plastic, rubber, foam, and upholstery components used in IVM cars. The only parts of IVM vehicles that are imported are the engine blocks and other steel components, due to Nigeria’s lacking steel smelting capacity.
“Ownership of manufacturing operations in 2024 is not determined by where specific production processes happen, but by WHO OWNS THE INTELLECTUAL PROPERTY. For instance, Innoson owns the IP rights to their vehicles, which is distinct from simply assembling VWs and Peugeots. Equating one to the other shows misunderstanding about how things work.”
Hundeyin explained that there is no arrangement with Nissan about Seun Kuti’s assertion that Innoson “assembles Nissan cars.” Rather, Innoson is able to manufacture cars under its own name because of intellectual property agreements it has with Chinese automakers.
“IVM does not ‘assemble Nissan cars.’ There is no ‘license’ or agreement whatsoever with Nissan. IVM does have IP agreements with Chinese carmakers like @baicglobal and @DFM_Corporation, which allow them to reproduce vehicle designs under their own brand name. This method has been crucial in China’s automotive industry growth.”
“I really wish that Nigerian men (it is always men!) would be less obsessive about opening their mouths and making their voices heard, and more concerned with the quality of what comes shooting out of their mouths. It’s really not compulsory to speak, especially on things one has zero or half-knowledge on. We should learn to shut up occasionally! It’s a life skill!’” he added.
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