Telcar sues GM for NIS 43m over Daewoo franchise

Telcar's distribution contract for Israel was cancelled after a General Motors - Daewoo deal.

Auto importer Telcar Co. Ltd., owned by Rami Ungar, has filed a NIS 43 million claim for compensation from General Motors (NYSE:GM) with the Tel Aviv District Court.

Telcar claims that GM illegally cancelled Telcar's exclusive distribution contract to import Daewoo Motor Co. (KSE:4550) cars into Israel. Daewoo and Telcar signed a distribution contract in May 1993. GM and Daewoo signed a joint business agreement in April 2002. The Telcar-Daewoo contract was cancelled two months later.

Telcar claims that GM planned an implemented a worldwide scheme to dispossess Daewoo franchisees, including Telcar. Telcar claims that it had sold 50,000 Daewoo cars in Israel for NIS 3 billion.

No statement of defense has been submitted yet.

Published by Globes [online] - www.globes.co.il - on October 4, 2004

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