FADA Issues Legal Notice To UM Motorcycles

The Federation of Automobile Dealers Association or FADA has slapped UM Motorcycles and its management with a legal notice. FADA says that UM Motorcycles, under Ayush Lohia and Jose Miguel Villegas has been unsympathetic towards UM Motorcycles dealers. UM Lohia is a joint venture between the Lohia Group and UM Motorcycles which is an American motorcycle company. The joint venture was set up in 2016 to sell and manufacture motorcycles under the brand of 'UM Motorcycles', with company having its plant in Kashipur, Uttar Pradesh. UM's last launch in India was the UM Renegade Classic, which was launched in September 2017.

UM Motorcycles ceased its operations in India earlier this year and this has caused major losses to about 80 dealers who had invested about Rs. 150 crore in total. Service and spares are becoming a major problem as the company's spare parts warehouses have been shut as well. Plus, these dealers have a huge stock of BS3 motorcycles which cannot be sold in India now. FADA says that UM has refused to compensate dealers for the remaining stock and is not returning the advance payment to the dealers as well.

FADA also said that the company came up with a scheme of selling BS4 motorcycles to dealers in lieu of their BS3 stock and advances, which didn't sit well with the dealers as the BS-IV UM bikes were missing major components such as Electronic Fuel Injector module controller and so on and so forth. Plus, with no spares and service backup, more and more customers are becoming agitated and sending litigations to which the dealers have no answers.

FADA, through its counsel Khaitan & Co, has issued a legal notice to UM Lohia and its management, calling upon them to redress all grievances of dealers relating to the losses suffered by dealers due to actions of UM Lohia and to take steps to ensure the maintenance and servicing of motorcycles already sold in accordance with the warranty terms and law.



from CarandBike - Latest News

Comments

Post a Comment

Popular posts from this blog

Harley-Davidson Streetfighter Spotted In Flesh For The First Time

Image
Harley-Davidson unveiled a range of new motorcycles last year that included an adventure tourer, streetfighter and Custom range. This, along with the LiveWire electric motorcycle defines the new-age 21st century offerings from the manufacturer as it taps into newer markets and caters to an evolving customer base. Now, giving a glimpse of the new models out in the open, the new Harley-Davidson Streetfighter was spotted in the prototype version at what seems to be a trade show in the US, giving a good glimpse at motorcycle looks like in flesh. While board says 'Styling Prototype', the production-spec version of the Streetfighter is likely to stay identical to the model showcased here. In addition to the Streetfighter, the Pan America was also showcased at the same event. The production spec versions of both bikes could be unveiled at EICMA this year. Also Read: Harley-Davidson Livewire To Be Unveiled In India In August The Harley-Davidson Streetfighter is a completely new mot
Read more

Brixton 1200 To Rival Triumph Bonneville T120

Image
A 1200 cc modern classic with similar design lines as Triumph's iconic Bonneville series, has reportedly been cleared for production. The bike was showcased as a concept at last year's EICMA motorcycle show, and from the looks of it, this is a model developed in China with the Triumph Bonneville T120 in its sights. The Brixton brand though is part of Austria's KSR Group, which imports bikes from several Chinese manufacturers, including CF Moto. And while the new Bonneville rival will be manufactured in China, the design and engineering has been created at KSR's design centre in Krups, Austria. Also Read: Triumph Bonnville T120 First Ride Review The Brixton 1200 cc motorcycle has not been named yet, or a launch timeline announced So far, the company has not committed to a launch date yet, but says that it will eventually make it to production. And from the looks of it, that may well be sometime later this year, maybe even at the EICMA 2020 show in Milan, Italy, in
Read more

Zongshen Cyclone RX6 Based On Norton 650 Nearing Completion

Image
While there still doesn't seem to be a buyer for iconic British brand Norton Motorcycles which went into administration in January this year, the firm's 650 cc parallel-twin seems to be finding life in China. While Norton apparently sold off the engine rights of its 961 engine to China's Jinglang just before the brand went into administration, the deal for the 650 cc engine was finalized way back in 2017 with Chinese giant Zongshen. The 650 cc parallel-twin engine was due to be used in Norton's Atlas and Superlight models, but now it looks like that engine platform will make its debut in a Zongshen motorcycle, called the Cyclone R6. Also Read: How Much Is Norton Motorcycles Worth Now? One of the patent designs shows the Cyclone RX6 with full touring accessories and luggage Two prototypes fitted with the 650 cc parallel-twin engine were shown in China late last year, on the Zongshen Cyclone RX6 adventure bike and the RX6 sport tourer. Both bikes used Zongshen-made
Read more