Toyota Nigeria Limited (TNL) and one of its dealers, Globe Motors Holdings Ltd (GMHL) have decided to sever ties due to the violation of a dealership agreement between both parties. This is according to Daily Trust.
The Details: It was gathered that both parties chose to terminate their longstanding partnership of 25 years over warranty issues.
What this means: Globe Motors can no longer participate in the sale of Toyota vehicles, service and parts, thereby shortening the number of accredited Toyota dealers to seven in Nigeria.
This leaves Elizade Nigeria Limited, RT Briscoe (Nigeria) PLC, Omoregie Motors Limited, Germaine Auto Centre Limited, Mandillas Enterprises Limited, Metropolitan Motors Limited and Kojo Motors with the rights to market vehicles, service and parts for Toyota in Nigeria.
Commenting on the relationship, the source said, “The relationship has waxed stronger over the years with a steady expansion of the models/variants marketed by TNL and we would never compromise on this.”
[READ MORE: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast]
Globe Motors responded that it was unfazed about the whole development. Nevertheless, it asserted its strength as the biggest importer of Toyota vehicles in the last 25 years.
What you should know: Toyota is especially known for its genuine manufacturer’s warranty offer on vehicles and parts; repair services by Toyota Japan trained technicians, technical support on repairs and business expansion, tropicalized vehicles designed for Nigerian market and road conditions, among others.
Toyota Nigeria Limited (TNL) was licensed as the sole authorized distributor to sell and promote vehicles and parts on behalf of Toyota Motor Corporation (TMC) of Japan.
About Toyota Nigeria Limited: The Toyota brand was first introduced into Nigeria in 1965. By 1976, the number of Toyota distributors had grown to five.
Ten years later, Toyota Motor Corporation, Japan (TMC) appointed two additional distributors because of poor performance by some of the appointed distributors.
By 1995, four distributors, which included Elizade Nigeria Limited were the only surviving distributors for Toyota Motor Corporation, Japan. However, for ease of business processes and efficiency, Toyota Motor Corporation, Japan, decided to consolidate its operations by appointing Toyota (Nigeria) Limited as its sole distributor in Nigeria.
This consequently paved the way in 1996 for Toyota (Nigeria) Limited (TNL) to commence operations as the exclusive distributor of Toyota Motor Corporation in Nigeria. In its early days in Nigeria, the Toyota brand had to strive for acceptance, particularly in the face of stiff competition from the established brands at the time.
Globe Motors Holdings Ltd: Globe Motors is an automobile dealership based in Lagos, Nigeria. The company deals exclusively in brand new passenger and commercial vehicles. Its stable of brands comprises Mercedes-Benz, Toyota, Hyundai and Higer.
[READ ALSO: Toyota to invest in Nigeria’s energy and healthcare, says no to assembling plant for now]
The company’s journey began in March 1984 when Founder and Chairman, William Anumudu, registered the company with a mission to transform the underserved Nigerian automobile industry. Over three decades later, Globe Motors has surpassed its initial aspirations and the company continues to set the pace in the evolution of the country’s automobile sector.
So why do we encourage foreign companies to dictate monopolies for us