$14 million lawsuit against Temsa in the U.S.
Temsa, the most important Sabanci Holding company in the automotive industry, sells buses to 66 countries around the world. The most notable among these is the United States, where it started its first exports in 2008 and sold more than 1,000 vehicles in 10 years. Temsa has become one of the four major brands globally in this short time, with a 10 percent market share of luxury bus sales in the U.S., particularly popular with Silicon Valley companies.
Temsa had been planning to produce in the U.S. indefinitely. However, recently it has found itself in deep waters with its local partner. According to sources familiar with the situation, Temsa is embroiled in a lawsuit with CH Bus Sales, an exclusive sales, service and spare parts distributor in North America.
After 8 years of cooperation, Temsa, which was established in the U.S. with 100 percent ownership under the subsidiary, Temsa North America (TNA), did not grow as it wanted and ended its business partnership with the U.S. company, reclaiming distribution rights. CH Bus Sales then decided to launch a lawsuit for $13.9 million in damages with the Delaware Federal Court, claiming the deal with Temsa was still ongoing. The legal proceedings have put a halt to Tempsa’s U.S. production.