Automaker Nissan Motor and its exclusive marketer Hover Automotive India appear to be headed for a face-off with the former saying it has terminated the association, while Hover maintained that the announcement is premature and negotiations are on.

The marketing company added it has the rights to explore remedial options to protect the welfare of its employees.

Japan-based Nissan announced on Friday its Indian subsidiary, Nissan Motor India Pvt Ltd, has assumed full responsibility for the sales, marketing and distribution of all Nissan-branded vehicles and parts in India with immediate effect. It said the exclusive agreement with Hover has been terminated.

The statement, quoting Kenichiro Yomura, Nissan President, India Operations, said the company is ready to handle its own marketing and distribution.

Its “priority will be to ensure a smooth transition from current operations”.

Taking ‘strong exception’ to Nissan’s decision, Hover’s Acting Chief Operating Officer Richard Spitzer said negotiations with Nissan are on and it is “premature to say any agreement regarding termination has occurred”.

Nissan can progress only with Hover’s “cooperation and consent”, he added.

Nissan does not have any legal basis for terminating the services of Hover in India.

The marketing company “reserves all rights and remedies available and will pursue the necessary course of action to protect interest of its employees and stakeholders”.

At the launch of the Datsun Go earlier this month, Vincent Cobee, Global Head-Datsun, and Corporate Vice-President, Nissan Motor, had said the Datsun Go will piggyback on the Nissan dealership outlets, but will have a dedicated sales team.

There are over a 100 Nissan dealerships and most of them will offer the Datsun. The network will more than triple in the next three-four years, he said.

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