Nissan terminates joint venture with Vietnamese distributor Tan Chong
Nissan terminates joint venture with Vietnamese distributor Tan Chong
Tan Chong Motor Holdings Berhad has lost the right to import and distribute automobile units as well as completed cars of Nissan in Vietnam.
According to The Star, Nissan Motor Co., Ltd. issued a notice to terminate its joint venture with Tan Chong Motor Holdings Bhd. that imports and distributes Nissan vehicles and spare parts in Vietnam. The decision will take effect from September 10, 2019.
Tan Chong, which is the exclusive distributor of Nissan vehicles in Malaysia, Cambodia, Laos, and Myanmar, did not give any reason for the notice of termination.
In 2010, Tan Chong's wholly-owned subsidiary ETCM (V) Pte., Ltd. acquired a 74 per cent stake in the joint venture company (Nissan Vietnam Co., Ltd.) from Kjaer Group A/S (Denmark), while the remaining 26 per cent belongs to Nissan Motor.
With this holding structure, once Nissan terminates its partnership with Tan Chong, Nissan imports to Vietnam will grind to a complete halt.
However, it said the termination had no significant financial and operational impact on the group for the current financial year. “Notwithstanding the above, ETCM remains open to further discussion with Nissan Motor to explore alternative solutions and business opportunities for mutual benefits in Vietnam,” the company added, according to Malaysian national news agency Bernama.
In December 2009, Nissan Vietnam began importing and distributing Nissan cars and parts and accessories. In 2010, Nissan Vietnam started assembling the Nissan Grand Livina model in the domestic market and developed a new exclusive dealer system nationwide.
Nissan Vietnam also imports and distributes many Nissan vehicles in Vietnam, including Teana, Juke, X-Trail, and Navara.
Nissan Motor Co., Ltd. announced on its website on November 22 the results of the meeting at the company’s global headquarters in Yokohama. After reviewing a detailed report of an internal investigation, the board voted unanimously to discharge Carlos Ghosn as chairman of the board and representative director and discharge Greg Kelly as representative director.
Carlos Ghosn has been arrested on charges of financial fraud, marking the end of nearly two decades of leadership and substantial influence in the Japanese automobile industry.
Earlier, the Japanese authorities arrested Ghosn on November 19 for allegedly violating the law governing the exchange and financial instruments of the country, manipulating financial records and reporting less than his full personal income.
On December 10, Nissan Motor Co., Ltd.’s former representative director and chairman Carlos Ghosn and former representative director Greg Kelly were indicted for violating the Japanese Financial Instruments and Exchange Act by making false disclosures in annual securities reports, as stated on Nissan’s website.
