• Monday, July 22, 2024
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Updated: Toyota Nigeria revokes Globe Motors’ accredited dealership status

Updated: Toyota Nigeria revokes Globe Motors’ accredited dealership status
Toyota (Nigeria) Limited (TNL) has parted ways with Globe Motors Holdings Limited (GMHNL), one of its erstwhile dealers. Internal sources at TNL allege that GMHNL may have infringed on their dealership agreement with TNL, the sole franchisee and distributor of Toyota Motor Corporation (TMC) in Nigeria.
The implication of this development, among other things, is that GMHNL can no longer act on behalf of TNL in any transaction like sales, service, parts with the public and its customers.
Some of the service and products exclusive to Toyota accredited dealers are genuine manufacturer’s warranty offer on vehicles and parts, repair services by Toyota Motor Corporation, Japan, trained technicians and offering of tropicalised vehicles designed for the Nigerian market.
Other services and products exclusive to the accredited dealers include consultancy services in workshop management, technical support in repairs and business expansion, WEB EPC services and the display of Toyota Motor Corporate identity Signages.
The development therefore leaves Toyota Nigeria with seven accredited dealers. These are Elizade Nigeria Limited, R.T. Briscoe Nigeria plc, Omoregie Motors Limited, Germaine Auto Centre Limited, Mandilas Enterprises Limited, and Kojo Motors Limited.
Toyota Nigeria had in a caveat emptor published in national newspapers last week revoked the dealership status of Globe Motors.
According to the public notice, “Toyota (Nigeria) Limited wishes to inform the general public and all our dear customers that Globe Motors Holdings Nigeria Limited is no longer a Toyota accredited dealer, hence is no longer authorised to transact any business on behalf of the TNL.
“As such, Toyota will not be liable for any business transaction with Globe Motors Holdings Nigeria Limited.” The TNL accused Globe Motors of infringing on its dealership agreement existing between the duo, and by extension the business operational guidelines of the TMC for the Nigerian market. It was learnt that several attempts made to resolve the crisis between the two parties, which had lingered since 2017, failed.”
But is reaction to the development, Victor Oguamalam, managing director of Globe Motors Holdings Limited, said TMC, the number one automobile manufacturing company in the world, had about four to five layers of distributorship for their products – Toyota vehicles and spare parts covering all continents of the world.
All these distributors ensure that TMC standards are met and factory warranty of three years is ensured. Globe Motors is successfully linked to this value chain.
According to Oguamalam, Globe Motors has been among the leading distributors of Toyota vehicles in Nigeria in the past 25 years. He said the dealership’s warranties are more than those of any subset in the country.
According to Oguamalam, his company imports tropicalised vehicles built for Nigerian roads and suits the climate, and its customers are given three years warranty as stipulated by the manufacturer of Toyota vehicles including better back-up services.