Aston Martin sued by its Middle East distributor
Looks like things are not going well for the British luxury car maker due fact that Aston Martin Lagonda Ltd. UK is being sued for $50 million by Middle East Aston Martin, its distributor in Dubai, for breach of contract.
Middle East Aston Martin (MEAM) is an independent company established in 2003, under United Arab Emirates law, as the exclusive distributor for Aston Martin cars in the Middle Eastern region.
As you know Ford sold the bulk of Aston Martin a year ago for $848 million to the Kuwaiti investment group DAR and Aston Martin collector John Sinders. The American automaker retained a $77 million stake in the British luxury marque.
The problem between the two companies, MEAM and Kuwaiti investment group DAR consists in the renewal option of the contract of Middle East exclusivity. MEAM claims that the contract with Aston Martin Lagonda Ltd. was made for an initial five-year period with a renewal option. However it looks like Aston Martin Lagonda rejected this renewal option and now is being sued for $50 million so that MEAM will be able to cover its investment per the agreement