German Car Zone

Aston Martin is being sued for $50 million by one of its own distributors because of an apparent breach of contract. The lawsuit, filed by Middle East Aston Martin (MEAM), claims one of the new owners of the carmaker, Kuwaiti investment group DAR, is planning to refinance its stake in the company and has disallowed the distributor to renew its investment.

Lawyers representing MEAM state that during the formation of the Middle Eastern distributor back in 2003, all existing financial obligations of Aston Martin in the region were cleared and that several million dollars was invested in the carmaker. In fact, MEAM also helped Aston Martin resolve an existing legal dispute with the previous distributor of the luxury cars in the Middle East, Reuters reports.

MEAM is upset because it had placed significant investment in Aston Martin for an initial five-year period and was entitled to a renewal option for another five year investment. However, towards the end of the first five-year period, Aston Martin allegedly rejected these renewal rights.
The distributor states in its lawsuit that a settlement of $50 million will cover its investment per the agreement, “which has been unfairly terminated and also the future revenues that will be lost due to the early termination of the agreement.”


Source: Motor Authority >> Aston Martin being sued by Middle-East distributor