$14 million lawsuit against Temsa in the U.S.

Dünya Executive - - BUSINESS - KERIM ULKER

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.

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