UK Tata dealers affected by the collapse of the Indian brand’s import company have been offered help from the Retail Motor Industry Federation (RMI)’s legal department, the trade association said on Tuesday.
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The RMI said that Motor Vehicle Importers (MVI), the importers of Tata cars to the UK, has gone into liquidation, affecting warranties provided with new cars the dealers sell.
As a result, dealers cannot sell the vehicles they still have in stock, the RMI said, adding that those dealers are also facing legal action from MVI Financial Services.
RMI franchised dealer director Alan Pulham said: “MVI offered free vehicles to dealers, the proviso being that if they were unsold after six months, MVI would take them back, and pay the stocking charges.”
Unfortunately, before the six months was up, MVI went into liquidation.
Following the collapse of MVI, sister company MVI Financial Services, which was unaffected by the liquidation, contacted the dealers.
Pulham added: “MVI Financial Services said they would be collecting the vehicles from dealers. Their intention is to sell them at auction and then sue the dealers for the difference between the price they get at auction and the sum they would get through normal retailing. This could amount to thousands of pounds.”
