Investment
Nissan terminates joint venture with distributor Malaysia’s Tan Chong in Vietnam
Tan Chong, which is the exclusive distributor of Nissan vehicles in Malaysia, did not give any reason for the notice of termination.
Nissan Motor Co Ltd has issued a notice to terminate its joint venture (JV) with Tan Chong Motor Holdings Bhd that imports and distributes Nissan vehicles and spare parts in Vietnam, The Star reported.
In a filing with Bursa Malaysia on December 14, Tan Chong said the notice was effective from Dec 9, 2018, while the JV agreement dated Sept 22, 2010, would terminate on Sept 10, 2019.
In 2010, Tan Chong's wholly-owned subsidiary ETCM acquired a 74% stake in the JV Company, Nissan Vietnam Co Ltd, from Kjaer Group A/S. Nissan Motor holds the remaining 26% of the charter capital. Nissan Vietnam Co., Ltd is principally involved in the importation and distribution of Nissan vehicles in Vietnam.
Tan Chong, which is the exclusive distributor of Nissan vehicles in Malaysia, did not give any reason for the notice of termination.
However, it said the termination had no significant financial and operational impact on the group for the current financial year. “Notwithstanding the above, ETCM remains open to further discussion with Nissan Motor to explore alternative solutions and business opportunities for mutual benefits in Vietnam,” the company added.
The Group is the franchise holder and exclusive distributor of Nissan passenger and light commercial vehicles as well as Renault vehicles in Malaysia. Since 2005, Tan Chong has expanded automotive business operations overseas with the importation, distribution and assembly of motor vehicles in Vietnam, besides the provision of automotive workshop services in Cambodia, Thailand and Myanmar.
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In 2010, Tan Chong's wholly-owned subsidiary ETCM acquired a 74% stake in the JV Company, Nissan Vietnam Co Ltd, from Kjaer Group A/S. Nissan Motor holds the remaining 26% of the charter capital. Nissan Vietnam Co., Ltd is principally involved in the importation and distribution of Nissan vehicles in Vietnam.
Tan Chong, which is the exclusive distributor of Nissan vehicles in Malaysia, did not give any reason for the notice of termination.
However, it said the termination had no significant financial and operational impact on the group for the current financial year. “Notwithstanding the above, ETCM remains open to further discussion with Nissan Motor to explore alternative solutions and business opportunities for mutual benefits in Vietnam,” the company added.
The Group is the franchise holder and exclusive distributor of Nissan passenger and light commercial vehicles as well as Renault vehicles in Malaysia. Since 2005, Tan Chong has expanded automotive business operations overseas with the importation, distribution and assembly of motor vehicles in Vietnam, besides the provision of automotive workshop services in Cambodia, Thailand and Myanmar.
