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Dubai: Middle East Aston Martin (MEAM), Dubai, has submitted a claim to the civil bench of the Dubai Courts against Aston Martin Lagonda, UK, for breach of performance of their existing agreement.
The petition alternatively seeks the British luxury car manufacturer to compensate MEAM for damages amounting to almost $50 million (Dh183 million).
MEAM is an independent company established under UAE law in 2003. It exclusively owns the distribution rights for products manufactured by Aston Martin Lagonda in the Middle East.
"On its creation in 2003, MEAM comprehensively cleared the existing financial obligations of Aston Martin Lagonda in the Middle East and invested in the optimisation of the distribution structure resulting in an improvement and increase of the brand's presence as well as in the sales numbers in a region." MEAM said.
"The company also resolved an existing legal dispute with the previous distributor of Aston Martin in the Middle East," it said.
Significant investments were made on the basis of an anticipated cooperation period of ten years between Aston Martin Lagonda and MEAM that meant an initial five-year period with a renewal option of equal duration.
However, towards the end of the initial five year period, Aston Martin Lagonda rejected the renewal of the distribution rights with MEAM.
"Market observers attribute Aston Martin Lagonda's estranged policy towards its distribution partners to the entrenched interests of its majority shareholder, the Kuwaiti investment group DAR, and their intention to refinance its stake in the company," the statement said.
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