This will be an ugly, messy spat. Hover Automotive India has reportedly exercised its available legal options regarding the fallout of its sales, marketing and distribution agreement with Nissan Motors's local unit, Nissan Motor India Private a few days ago according The Hindu newspaper. The automaker's termination of its business agreement with the auto company, which was announced in public on February 16, came at a bad time, said the Indian news site, as the latter is prepped for its Datsun Go vehicle launch. Prior to the deal fallout, Hover was the official partner and distributor of Nissan in India, said a Business Standard report.
Hover reportedly said that it has exhausted judicial means for Nissan to reinstate its business agreement with the Indian firm. Moreover, The Hindu said that Hover was so insistent that Nissan honor its agreement that the former issued a warning on all of its associates to cease immediate action upon Nissan's termination order.
Via a public notice, Hover claimed that Nissan saying that the termination of its business agreement was invalid and ineffective. The notice also read, "(All those who have a relationship with Hover that) they will need to consider the cost, damages, consequences and legal proceedings that they would expose themselves if they do act on the basis such notice or action of Nissan.''
Hover, however, was unclear about which court did it seek legal action regarding the termination of Nissan's business agreement with the former, The Hindu said.
Business Standard both reached out to Nissan and Hover regarding the fallout. While Hover chose to not respond to the online news site, Nissan said in a response to its email questionnaire, "Nissan carefully considered all options available to it and took appropriate advice before terminating. Due to the sensitive nature of this matter we have no further comment. We are focusing on our Indian Operations to ensure minimal disruption and to provide our customers with a seamless transition."
