[TusharK]

Earlier this year, MAN Trucks India - a Volkswagen Group company, decided to shut down its operations and sell its assets in India. The sudden exit from the Indian market has irked dealers, who are planning to move the court seeking compensation.



The Federation of Automobile Dealers Association (FADA) has stated that the dealers had invested Rs. 200 crore in infrastructure and software equipment and have not been offered any compensation for the same.

In response, MAN Trucks India has said that it has only terminated the sales contract and that dealers will continue to offer after sales service to its customers. MAN will be supplying spare parts to dealers for five years. Further, the company has also offered a support program to dealers that is likely to generate more earnings.

Source: Economic Times

Link to Team-BHP News

[GTO]

If a company suddenly decides to exit the market, it should definitely have the decency to compensate its dealer-partners who have invested in the brand. Dealerships don't come cheap, especially when you count for the time, land, construction & interiors, financing, human resources, workshop facilities etc.

Whatever these dealers would ask for would be peanuts for the MNCs. Better to part on a good note. Who knows where you will cross paths again. Think of Peugeot - it wants to enter India, but most of us only remember the non-refunded booking deposits of the 309.

Plus, unhappy dealers will take even lesser care of your already angry customers (i.e. MAN owners).

[scorpian]

India seems to be ana easy play field for these global giants, unlike other countries having stringent laws and faster verdict times,we seem to be lacking in both.
Huge investments to set up dealerships and then parent company decides to call it wraps is totally shocking. All dealers should be compensated adequately for not only monetary losses but also due to opportunity losses incurred.

[GTO]

Originally Posted by scorpian

All dealers should be compensated adequately for not only monetary losses but also due to opportunity losses incurred.

Opportunity loss compensation will be asking for a bit too much. The dealers made a business decision after all, and all businesses come with risk.

MAN should give them a package such that it covers a fair part of their investments & losses - recent as well as costs for the 3 - 5 months it'll take to move to a new brand.

[Axe77]

A very close friend of mine has a MAN dealership. I am in touch with him just to see how this plays out. I know that MAN had an all India dealer meet a month or so ago about the winding up. I guess negotiations are ongoing and legal remedies not being ruled out for now. These guys must also be looking at their pals with GM dealerships to understand how they saw that situation unfold when they shut shop.

VAG has varied brands and business interests in India and it would probably be worth their while to part on a sensible note I feel.

At the very least, I feel there should be some coverage for the investment made along with assured service and parts support for existing sales. For dealers who want to continue supporting customers, for retaining nearly similar facilities, their source of revenue will become service only for next few years instead of sales + service.