HARARE -- Willowvale Mazda Motor Industries, Zimbabwe's largest car assembly plant, has resumed operations after a shortage of forex to import kits coupled with a crippling debt and declining sales volumes forced the firm to temporarily suspend operations earlier this year.The plant, which was put on care and maintenance in January, has resumed operations with the manufacture of the Mazda BT 50 range, a development that will help serve jobs in a country where unemployment hovers above 90 percent.
WMMI managing director Dawson Mareya said this week the company was rolling into action a short-term resuscitation plan that will boost capacity utilisation from the current 10 percent.
I am glad to announce that we have since resumed operations here at Willowvale Mazda Motor Industries. We recently acquired loans from local financial institutions with part of the money used in clearing the arrears owed to our supplier, said Mareya.
Mureya said the car assembler was looking to ramp up production to 80 units per month but he bemoaned lack of capacity on the local market to absorb vehicles owing to liquidity challenges and lack of mortgages.
But plans by the government to ban imports of older and cheaper second hand vehicles is certain to help boost demand for Willowvale assembled vehicles.
The government owns Willowvale through the Industrial Development Corporation, which has a 75 per cent stake in the car dealer through Motec Holdings Private Limited.
Post published in: Economy