Tan Chong Motor Holdings Bhd (TCMH) has recently announced that Nissan Motor Co Ltd has issued a notice of termination of its joint-venture agreement with Tan Chong’s wholly-owned subsidiary, TC Motor Vietnam (TCMV), thus losing its rights to import and distribute Nissan vehicles and spare parts in Vietnam.
According to a report by The Edge Markets, the termination will see TCMH losing its import and distribution business in Vietnam from September 10th next year.
Back in 2010, the agreement was signed after TCMH bought a 74% charter capital contribution from Denmark-based Kjaer Group A/S in the joint venture company, Nissan Vietnam Co Ltd for USD 7.4 million then.
Nissan owns a 26% stake in the joint venture firm, and the JV firm has the exclusive rights to import and distribute Nissan vehicles and spare parts in Vietnam for 30 years, starting from November 2008.
TCMH said that the termination will have "no significant financial and operational impact on the group for the current financial year" and TCMH "remains open to further discussion with Nissan to explore alternative solutions and business opportunities for mutual benefits in Vietnam".