Abstract: ABSTRACT My desire to carry out a research work on the Automobile industry was prompted as a result of the unique position which the Automobile industry occupies in the economic development of Nigeria and the entire world in general. Peugeot automobile of Nigeria is the First Automobile industry established in Nigeria in 1975. This study aimed at finding out why this important automobile company has not been able to achieve the objective for which it was established. In an attempt to find out some of the reasons for the non-achievement of its objectives to the Nigerian economy, its distribution system was selected as the focal point for the examination and evaluation. As a result of a thorough examination of the data collected from its distribution system the study discovered that there is distribution problems, such as delay in order processing, delivery schedule to mention a few of them.
It should be noted also that the prices of Peugeot cars and minibuses are not within the reach of the average Nigerian, besides, the distributors are not adequately encouraged, as a result of inefficiency in the total distribution system of the company. The high prices of the company's product could partly be due to the high cost of imported component parts which the company is importing, as well as the desire to maximise profits. The company has only achieved 36 . . . percent of local content and has to import 64 percent of its component parts. For the automobile industry to start yielding the required returns of development a maximum of 80 percent local content sourcing must be achieved. Hope is however not lost in this area as the Federal Government is intensifying effort to complete the Ajaokuta Steel Rolling Mill and to revive the Delta Steel Alaja, this will provide the industry with the required local contents needed.
Nigeria prefer importing built-up cars from other countries which are cheaper than the product of PAN Limited, because the manufacturing countries source most of their raw materials locally and enjoy the advantage of technology over it Nigerian counterparts. The study suggested that, the company should invest heavily on local content sourcing so as to be able to reduce prices of its products and thereby increasing its market share in the Nigerian automobile market, solve problems of distributors and to advertise its products using the various mass media stating the advantages of buying a made in Nigeria product i.e. Peugeot products over that of imported products.............ORDER FOR COMPLETE PROJECT MATERIAL NOW!! .
