After six year long relationship with Nissan India, the sales and distribution agreement comes to end when Nissan terminated it on Feb 17, 2014. The company is winding up its operation in very short period after the termination was announced.
Hover has communicated to its employee to find out other jobs, as the company will keep them on payroll only for 3 months only. Hover currently have 180 people. Even one of the senior official said Mint reporter that “People have not received their last month’s (March 2014) salary and everybody has been told to look out (for jobs)” he wanted to be anonymous.
After the termination of agreement, Hover issued public notice claiming that the action “invalid” and “ineffective”. They also filed the interim and emergency relief against the Nissan Motors Co. Ltd. at Singapore International Arbitration Center. In proceeding, Hover lost the arbitration in March.
“Losing this arbitration means the business will not come back to the company. But the case is still on and will take another 2-3 months to end,” said another official requesting for anonymity. Nissan did not commented on the topic saying sensitive nature of the subject.
Despite this issue, Nissan sales rise three times to 7019 units leading by launch of small segment car Datsun Go. The company had sold 38,217 units fiscal ended March, 14 in comparison to 36,975 in previous fiscal.
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