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    Volkswagen’s MAN Trucks India dealers planning to move court

    Synopsis

    “The dealers of MAN Trucks had invested over Rs 200 crore in infrastructure, software equipment, etc., in the last few years at their dealership units, for which MAN has not offered any compensation,” John K Paul said over the phone from Kerala.

    The company has terminated the sales contract and the service contract is still active, and has also offered dealers a support programme to enhance their opportunity to generate more earnings, a spokesperson said.
    NEW DELHI: A group of dealers of Volkswagen’s MAN Truck & Bus unit is planning to move court seeking compensation after the German truck maker decided to exit the Indian market, president of the Federation of Automobile Dealers Association (FADA) said.

    “The dealers of MAN Trucks had invested over Rs 200 crore in infrastructure, software equipment, etc., in the last few years at their dealership units, for which MAN has not offered any compensation,” John K Paul said over the phone from Kerala.

    Such exits by manufacturers not only cause financial loss to the dealer, but also hurt the credibility of the dealership as it is the one that faces the customer, Paul said.

    “This has become a trend, first GM, now VW’s Scania and MAN. The government must enable a dealer agreement or law to keep OEMs responsible towards the loss incurred by dealers. We will soon move court seeking compensation for dealers,” he said.

    MAN Trucks India said it was aware of the hardships caused to dealers by its decision. The company has terminated only the sales contract and the service contract is still active, and has also offered dealers a support programme to enhance their opportunity to generate more earnings, a spokesperson said.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    4 Comments on this Story

    chandra sheker681 days ago
    Volkswagen India they are cheating very well and they are not responding my concern(multiple calls and visits). Finally, I went to consumer court, they didn''t submit the required docs the case is 2 years now. More Details: https://volkswagen-bad.blogspot.com
    Anil 730 days ago
    In near future if Feku returns almost all will leave to make their cars under make in OEM Countries. High 30% GST on manufacturing 30% on selling 30% service charge on Insurance 15% cost of carbon stamp duty and registration and finally after 225% payment for a car make in india u again pay 24% on ur servicing charges. Nice FAITKEY BUDGET FROM FEKU
    Ravinder Gambhir731 days ago
    Why don’t you compensate them for the cash they had invested in the dealership
    The Economic Times