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Controversy as auto partners feud over compliance

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Automobile manufacturer, Toyota Nigeria Limited (TNL), yesterday, revoked the accreditation of Globe Motors Holdings Nigeria Limited (GMHNL), over an alleged non-compliance of regulation.

Meanwhile, Globe Motors, an indigenous auto dealer, said it has no official relationship with Toyota to warrant such an action.

Toyota in a public notice sighted by The Guardian said Globe Motors is no longer authorised to transact any business on its behalf, and would therefore, not be liable for any business transaction with the dealer.

The notice reads: “Toyota (Nigeria) Limited wishes to inform the general public and all our dear customers that Globe Motors Holdings Nigeria Limited is no longer a Toyota accredited dealer, hence is no longer authorised to transact any business on behalf of TNL. As such, Toyota will not be liable for any business transaction with Globe Motors Holdings Nigeria Limited.”

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However, sources in Toyota told The Guardian that Globe Motors may have infringed on their dealership agreement with TNL, the sole distributor of Toyota Motor Corporation (TMC) in Nigeria.

By implication, Globe Motors, among others, can no longer act on behalf of Toyota in any transaction (sales, service, and parts) with the public and its customers.

Also, the action, according to stakeholders might affect even distribution of Toyota vehicles across the country, particularly in the Eastern market.

This development leaves Toyota with seven accredited dealers including, Elizade Nigeria Limited, RT. Briscoe (Nig.) Plc., Omoregie Motors Limited, Germaine Auto Centre Limited, Mandilas Enterprises Limited, Metropolitan Motors Limited and Kojo Motors Limited.

Speaking with The Guardian, Managing Director, Globe Motors, Victor Oguamalam, said his firm has no relationship with TNL to warrant such an action.

He explained that the dispute relates to warranty issue, which is guaranteed by Toyota.

“Our warranties are more valid than those of any other subset or moribund acronym in the country. We import tropicalised vehicles built for Nigerian roads and climate. Our customers enjoy three-year warranty as stipulated by the manufacturer of Toyota vehicles. We have better backup services,” he explained.

Oguamalam said Globe Motors has been one of the biggest importers of Toyota vehicles in Nigeria for the past 25 years, and trades with unencumbered capital in excess of N5 billion, and has financing from Tier one Nigerian banks in excess of N2 billion.


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