Dubai importer suing Aston Martin for $50 million
Aston Martin's new owners just finished untangling the red tape from their acquisition of the brand from Ford, and already they're back in court. The British sportscar maker is being sued by its own Gulf distributor for breach of contract.
Middle East Aston Martin (MEAM) was set up in 2003 with an exclusive deal from Aston Martin, then still owned by Ford, to distribute its sportscars across the region. The deal was reportedly signed for five years, with an option to renew for another five. However MEAM's lawyers are alleging that the now-independent Aston Martin, owned by a conglomerate of Kuwaiti investment firms, refused to renew the deal. The Dubai-based distributor is suing for $50 million, which it says would cover its investment in developing the market for Aston Martins in the Middle East, where as we already know, premium sportscars are in high demand.
[Source: Edmunds AutoObserver]
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Reader Comments (Page 1 of 1)
Jeff 1:44PM (3/18/2008)
I'm so happy to see that nobody is making excessive profit from $3.50 per gallon gasoline. Warms my heart.
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Oss 3:11PM (3/18/2008)
yes everyone has to make a profit if they are in business? Do you know how much US Govt makes in taxes on every gallon?
Das Boese 6:52PM (3/18/2008)
FIY:
We pay around 8.50 per gallon here in Germany, rest of Europe is not much better. So stop bitching, you have NO idea how cheap your gas actually is.
Jorge 7:29PM (3/18/2008)
So you live in a "rich" country and I pay like usd 2.60 here in Mexico, the price is fixed with yearly increments in cents, lol
Allan 1:45PM (3/18/2008)
Now I'll admit that I didn't RTFA, but am I missing something here?
The contract was 5 yrs.
With an OPTION to renew for another 5.
The contract was NOT renewed.
They're now suing?
I really feel like I'm missing something.
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TBlueMax 2:00PM (3/18/2008)
Depends on who held the option in the contract...
If MEAM held the option and attempted to renew, but was denied by the "new" Aston Martin, MEAM has a case.
If Aston Martin held the option and chose not to renew, MEAM doesn't have a shot at winning their case.
mikomi 2:11PM (3/18/2008)
From reading the article, the lawsuit is not about MEAM not being able to get a renewal of the contract but for "the future revenues that will be lost due to the early termination of the agreement."
So in other words, MEAM is suing for early termination of the contract. Apparently MEAM invested a lot in getting AM's past legal woes in the Middle East cleared up. I would guess that MEAM has not recouped the investment it put into the brand yet.
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kgt350 4:02PM (3/18/2008)
Maybe Aston can come out with a sand rail to make up for it.
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eroc 7:40PM (3/19/2008)
I thought Aston Martin was bought by Prodrive.
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amazingpersonlike 7:25PM (3/18/2008)
NICE TEETH
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dildomassive 7:26PM (3/18/2008)
nice lipstick
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