Following unresolved differences, bordering on infringement of a dealership agreement, Toyota Nigeria Limited (TNL), the sole authorized distributor and representative of Toyota Motor Corporation (TMC), has parted ways with one of its major dealers, Globe Motors Holdings Ltd (GMHL).
It was gathered that both parties chose to terminate their longstanding partnership of 25 years over warranty issues.
With the development, GMHL can no longer act on behalf of TNL in any transaction concerning Toyota Motor sales, service and parts, thereby buying 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 right to market vehicles, service and parts for Toyota in Nigeria.
Some of the services exclusive to Toyota dealers are; 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 the Nigerian market and road conditions, among others.
Reacting to the development, Globe Motors said it was unperturbed, stating that it has been the biggest importer of Toyota vehicles in the last 25 years.
Known for its genuine manufacturer’s warranty, repair services among others, Toyota was first introduced into Nigeria in 1965, and by In 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.
Meanwhile, 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.