Toyota Nigeria revokes Globe Motors dealer status

By: MIKE OCHONMA

Toyota (Nigeria) Limited (TNL) has parted ways with Globe Motors Holdings Limited (GMHNL); one of its erstwhile dealers. Internal sources at TNL allege that lobe GMHNL may have infringed on their dealership agreement with TNL, the sole franchisee and distributor of Toyota Motor Corporation (TMC) in Nigeria.

The implication of this development and breakdown in the long years of business relationship among other things is that GMHNL can no longer act on behalf of TNL in any transaction like sales, service, parts with the public and its customers.

Some of the service and products which are exclusive to Toyota accredited dealers are genuine manfacturer’s warranty offer on vehicles and parts, repair services by Toyota Motor Corporation, Japan trained technicians and offering of tropicalized vehicle designed for the Nigeria narket and suitable for road conditions.

Other services and products exclusive to the accredited dealers include consultancy services in worshop management, technical support in repairs and business expansion, WEB EPC services and the the disolay of Toyota Motor Corporate identity Signages.

The development therefore leaves Toyota Nigeria Limited with seven accredited dealers. These are Elizade Nigeria Limited, R.T. Briscoe Nigeria Plc, Omoregie Motos Limited, Geemaine Auto Centre Limited, Mandilas Enterprises Limited, Kojo Motors Limited and Mandilas Enterprises Limited.

Toyota Nigeria Limited had in a caveat emptor published in the natioanl newspapers last week revoked the dealership status of Globe Motors Holding Nigeria Limited.

According to the public notice, “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 the TNL.

“As such, Toyota will not be liable for any business transaction with Globe Motors Holdings Nigeria Limited.” The TNL accused Globe Motors of infringing on its dealership agreement existing between the duo, and by extension the business operational guidelines of the TMC for the Nigerian market. It was learnt that several attempts made to resolve the crisis between the two parties, which had lingered since 2017, failed.

But is reaction to the collapse of the decades of marriage of convenience between the duo, Victor Oguamalam, managing director of Globe Motors Holdings Limited said that TMC the number one automobile manufacturing company in the world has about four to five layers of distributorship for their products- Toyota vehicles and spare parts covering all continents of the world.

All these distributors ensure that TMC standards are met and factory warranty of three years is ensured. Globe Motors is successfully linked to this value chain.

According to the managing director, Globe Motors Limited has been among the leading distributors of Toyota vehicles in Nigeria in the past 25 years. He said the dealership’s warrantees are more than those of any subset in the country.