Tan Chong loses rights to import, distribute Nissan cars in Vietnam – no reason for contract termination

Tan Chong loses rights to import, distribute Nissan cars in Vietnam – no reason for contract termination

Tan Chong Motor Holdings has announced that it will lose the rights to import and distribute Nissan vehicles and parts in Vietnam, starting September 10, 2019. In a recent exchange filing, Tan Chong said Nissan Motor Co issued a notice of termination of its joint venture (JV) agreement with Tan Chong’s wholly-owned subsidiary, ETCM (V), without stating a reason.

The agreement was originally signed in 2010 after ETCM bought from Denmark-based Kjaer Group A/S its 74% charter capital contribution in the JV company, Nissan Vietnam Co Ltd, for US$7.4 million then.

The JV firm, in which Nissan holds the remaining 26% stake, has the exclusive right to import and distribute or re-sell Nissan vehicles and their spare parts in Vietnam, for 30 years starting from November 2008.

According to The Edge Markets, Tan Chong said the termination of the agreement will have “no significant financial and operational impact on the group for the current financial year.” It said ETCM “remains open to further discussion with Nissan to explore alternative solutions and business opportunities for mutual benefits in Vietnam.”

Meanwhile, Tan Chong has formed a new JV company in New York that will allow it to develop new distribution channels in the United States, Canada and other countries where it has a presence in. The move will also allow the company to source for new products/technologies which can be commercially developed for retail and distribution in Southeast Asia.

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Comments

  • panjang on Dec 17, 2018 at 11:51 am

    maybe Grab stake & influence in Tan Chong

    Like or Dislike: Thumb up 6 Thumb down 0
  • Isn’t it obvious why on Dec 17, 2018 at 11:52 am

    ETCM will be the butt of the joke in Vietnam if Malaysia trend is prove. Leaders has no vision and only cares to nickel and dime customer with substandard spec. Honda leaped frog Nissan in no time. Only now they’ve decide to focus on their product lineup instead of nickel and dime-ing their customer.

    Like or Dislike: Thumb up 21 Thumb down 1
    • 4G63T DSM on Dec 17, 2018 at 12:42 pm

      To be honest, I don’t see much if any nissans in Vietnam.

      So there you go.

      Like or Dislike: Thumb up 1 Thumb down 0
      • Vietnamese big loss.

        Like or Dislike: Thumb up 3 Thumb down 1
        • 4G63T DSM on Dec 17, 2018 at 9:08 pm

          Nope, the Vietnamese will simply take over assembly and distribution.

          Toyota, honda, Mazda (ironically the cheapest brand there) are the big ones, even you see more Chevy and Hyundai/Kia there. Nissan? I can’t even remember.

          Like or Dislike: Thumb up 2 Thumb down 0
    • This is what happens when basher says they were working hard and not lepak tido, but reality dun match with what he sez.

      Like or Dislike: Thumb up 20 Thumb down 1
      • Ahmadjr on Dec 17, 2018 at 9:21 pm

        They don’t get the tongkat, but they give tongkat from the bottom to the top. Whoever give the most, get the most. That’s why all some familiar faces cronies 15 years ago become so active in the news now

        Like or Dislike: Thumb up 3 Thumb down 0
  • Sohai (not ori) on Dec 17, 2018 at 11:57 am

    Pls terminate the lesen here oso..always bring in old models and keep retaining outdated models, the Almera Black Edition is a joke

    Well-loved. Like or Dislike: Thumb up 63 Thumb down 0
    • kzm (Member) on Dec 17, 2018 at 12:35 pm

      That depends on what Nissan say what can be imported or not. Distributor is just that distributor.

      Like or Dislike: Thumb up 4 Thumb down 1
      • So after backstabbing Mitsu and taking over them, backstabbing Ghosn and jailing him, now they backstab their long time ASEAN partner TanChong? Why im not surprised.

        Mesidis shud be extra extra careful with their rebadge deal with Nissan as well.

        Like or Dislike: Thumb up 10 Thumb down 2
    • poodah on Dec 17, 2018 at 1:16 pm

      My unker said almera is 100x nicer than city

      Like or Dislike: Thumb up 3 Thumb down 17
      • For real? on Dec 17, 2018 at 1:56 pm

        For real? I hope your uncle is not joking. Maybe Almera is 10 times the maintenance cost of city (for me personally).

        Like or Dislike: Thumb up 5 Thumb down 4
      • It s true.

        Like or Dislike: Thumb up 1 Thumb down 0
  • Carolyn Khaw on Dec 17, 2018 at 12:12 pm

    Tan Chong is a lousy distributor, look at Vietnam… Selling only 3 old models, Almera, X Trail and Navara. Vietnam is a growing market for passenger cars and Tan Chong is doing nothing. Can be said in Malaysia too. Hopefully Nissan Asia Pacific will take back Tan Chong Malaysian distributorship and appoint them just as dealers. We need more competitive models to fight with Honda, Toyota and Perodua.

    Like or Dislike: Thumb up 26 Thumb down 0
  • Ben Yap on Dec 17, 2018 at 1:27 pm

    maybe got terminated because they always use the impul and nismo bodykit strategy without new products and innovation.

    so the Vietnamese got angry with tan chong.

    Like or Dislike: Thumb up 14 Thumb down 1
  • keep it up ah chong on Dec 17, 2018 at 1:38 pm

    padan mukak ETCM.. just keep offer ugly, outdated, tin kosong, strip-off car with poor reliability.

    Like or Dislike: Thumb up 13 Thumb down 0
  • Akira on Dec 17, 2018 at 1:38 pm

    Veli veli good. Serve them right.

    Like or Dislike: Thumb up 6 Thumb down 0
  • seancorr (Member) on Dec 17, 2018 at 1:49 pm

    Have the feeling the Vietnamese want to have a share of the pie now that they are the true ‘Asian Tigers’. They must have told Nissan to give them rights or get out. Having worked with the Vietnamese for years I see their ego going up lately and they are bloody proud people now.

    Like or Dislike: Thumb up 8 Thumb down 1
    • Not Toyota Fan on Dec 17, 2018 at 3:30 pm

      Proud, egoistic, patriarch but very very hard working people (well, the Saigonese anyways). Easily 10X more rajin than your average Boleh-Lander. Show them the money & they’ll go all out to work for it.

      Like or Dislike: Thumb up 3 Thumb down 4
      • 4G63T DSM on Dec 17, 2018 at 9:12 pm

        Really? I should tell my Vietnamese business and factory owners that. ‘Suppose, that would humour them.

        Hahaha. Yes they work hard. Once payday comes, you can expect them to disappear after.

        Like or Dislike: Thumb up 5 Thumb down 0
  • Deserve it on Dec 17, 2018 at 1:54 pm

    Bravo. The quality of the cars they build is questionable (Almera). Management wise, they could do better. Not going to buy any Nissan as long as still under ETCM.

    Like or Dislike: Thumb up 12 Thumb down 0
    • thefact on Dec 17, 2018 at 3:11 pm

      Typical china man business strategy.
      Milk the models until the last drop.
      Remember the sentra? the C22 Vanette?
      They dont care bout the brand.

      What happened to Nissan Note plans?
      Or at least bring the Nissan Qashqai?
      You guys are not small volume players. compared to the rest.. but doing so bad, that i assume Mercedes gonna sell more then u buy in another 2 or 3 years.

      Innovation that Excites?? hahah.. (their tagline)

      Like or Dislike: Thumb up 17 Thumb down 0
  • Not Toyota Fan on Dec 17, 2018 at 3:22 pm

    No reason given … LOL. More likely, your sales performance was absolutely shite & Nissan is now taking over to do it themselves.

    Read between the lines lah … no significant financial and operational impact. If sales was so darn good, sure got impact one.

    Like or Dislike: Thumb up 2 Thumb down 0
  • This is the problem when you give sole distributorship to a company. ETCM is not making any effort to bring in the latest Nissan models which are sold in neighbouring countries. Nissan cars in Malaysia are grossly outdated and not competitively spec’ed. Models like ALmera, Livina and Teana should have been phased out ages ago. The Navara and X-Trail is getting outdated as well. The public are not attracted to cars with souped up body-kits or flashy alloy rims only. Give us newer technologies and safer cars. I wouldn’t be surprised if Nissan Japan decides to come in and manage the brand themselves in the near future. Maybe ETCM should concentrate on their Grab business instead?

    Like or Dislike: Thumb up 13 Thumb down 0
    • 4G63T DSM on Dec 17, 2018 at 9:16 pm

      TC is a bunch of lazy arsed so call distributor….if they can do such a horrid job here in malaysia, what sort of work do you think they will do in a LHD Vietnamese market?

      Like or Dislike: Thumb up 4 Thumb down 0
  • passion on Dec 17, 2018 at 4:11 pm

    good news!!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mambo on Dec 17, 2018 at 6:04 pm

    tan Chongs right to import, distribute and sell right should be revoked. They are one of d who cause the sales of Nissan car in this region to dip , only selling substandard,unattractive model,where other market distributor sells better model cars. Tan Chong makes Nissan brand less attractive to own n drive. Bad partner for amazing Nissan brand

    Like or Dislike: Thumb up 7 Thumb down 1
    • stastasta on Dec 18, 2018 at 4:05 pm

      tan chong has introduce lots of exciting new models in malaysia

      subaru xv
      subaru forester
      subaru outback
      subaru brz
      subaru wrx sti
      subaru levorg

      renault clio
      renault megane
      renault captur
      renault koleos

      Like or Dislike: Thumb up 0 Thumb down 1
      • IGP mom on Dec 24, 2018 at 12:09 pm

        Lol … but the most exiciting Impreza is nowhere to be seen. Tan Chong is just not dependable to bring in the really exciting models.

        Like or Dislike: Thumb up 0 Thumb down 0
  • Semi-Value (Member) on Dec 17, 2018 at 9:15 pm

    take back malaysia and also subaru malaysia….

    Like or Dislike: Thumb up 3 Thumb down 0
 

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