In an interview Viola Mukwazhi, said Willowvale Motor Industries (Private) Limited (WMMI) was failing to cope with increasing demand from Zimbabweans. Willowvale is a subsidiary of the wealthy Industrial Development Corporation of Zimbabwe (IDC) currently run by Mike Ndudzo.
The IDC is President Robert Mugabe’s cash-cow because it chalks up millions in dividends annually for the broke government. Willowvale is currently Zimbabwe’s only car manufacturer specialising in the Mazda range of motor vehicles with kits coming from Japan.
Japan, however, is reeling from the after effects of an earthquake, the worst in its impressive history since the Second World War when it was bombed by the United States of America (USA). “Willowvale cannot cope and we need more players in the motor industry,” Mukwazhi said.”If Willowvale is left to run the motor industry then the decision to ban second hand motor vehicles will not work. Where will the cars come from? Zimbabweans have cash and want to buy that is why they travel to countries such as South Africa.”
Zimbabwe dumped the worthless bearer cheque in 2009 for a dual currency – the United States dollar and the South African Rand as legal tender to dampen soaring inflation which had broken the Guinness Book or world records with inflation figures standing at 231 million percent. “This means that Zimbos have hard cash to buy their cars and so Willowvale must cope with soaring demand,” the business woman said.
The Government of Zimbabwe has banned second hand motor vehicles and left hand ones from entering the poor country saying they are “killing” the struggling local motor industry. However, Mukwazhi pointed out, cars at Willowvale are very expensive.
A Mazda 323, for example, costs about US$30 000 in Zimbabwe which amount can easily secure a second hand Mercedes Benz E-Class model in neighbouring South Africa. This amount can also easily purchase more than 10 second-hand Honda Ballads at US$3 000 each imported from Japan.
Mukwazhi said while the idea was “noble” it could prove “very problemmatic to implement in Zimbabwe”. “It will be difficult for us second hand car dealers,” she said. “Right now we are just trying to sell the cars that we had already imported before the ban was announced. I don’t know what we will do next.”
She said closing her business was “not on the cards” because it brought bacon to her table for the family. Mukwazhi also lamented the tax charged on second hand cars saying it was intended to “choke car dealers”. If one imports a motor vehicle into Zimbabwe the price almost doubles to protect the local industry. Willowvale currently manufactures about 3 000 motor cars only monthly.
Post published in: News