Floods cost Ghana automobile firms GH¢50m
Automobile companies in South Industrial Area, Accra have posted an estimated loss of over GHC 50 million due to the recent floods that hit Accra and affected their operations.
The estimated amount is expected to go up after the total assessment of the impact of the torrential rains on the night of October 26, 2011, the Ghana Automobile Distributors Association (GADA) has revealed.
In all the 12 companies, including PHC Motors, Rana Motors, Toyota Ghana Auto Parts, Japan Motors Trading Limited, CFAO, Silver Star, Mechanical Lloyd, Universal Motors and Honda Place recorded over 400 damaged cars.
Cars, including both new and old that had been brought to the various companies for servicing were submerged by the floods.
Speaking to journalists in Accra, Paul Kwabena Preprah, president of GADA said some of the new vehicles would have to be discarded.
“This is the worst disaster so far,” he said, adding that some companies had to close sections of their operations.
“We have experience floods before but not to this extent,” said the president of GADA, who is the managing director of PHC motors.
“Because it is the run up to Christmas most of us took stock of new vehicles. Manufacturers have advised that some vehicles that were submerged for 30 minutes would have to be discarded."
Though they have insured their businesses, Mr. Peprah stated that it would take over six months for the insurance companies to complete the processing of claim payments. He added: “Because the insurance would take months some of us have had to take emergency loans from our bankers. ”
Source: Daily Guide
Accra, May 17, 2012
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