Protect local traders against unfair treatment – Silver Star Auto
THE Silver Star Auto Limited (SSAL) has called for a new law to protect local trading companies against unfair treatment by their foreign counterparts.
It said the law should, among other things, make it difficult for foreign firms to walk away from their local partners after years of investment by the latter to market the products and services of the non-resident entity locally.
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The Executive Director of SSAL, Nouhad J. Kalmoni, appealed in Accra last Tuesday, when he and the Chief Executive Officer (CEO) of the company, Asad Nazir, addressed the press on recent developments around its Mercedes-Benz dealership.
Termination
Earlier this month, SSAL announced that it had ceased to be the authorised distributor of Mercedes-Benz vehicles in the country.
It said after 25 years of offering that service in the country, Mercedes-Benz German decided to terminate the contract and give the same to a new firm.
Allegations of mistreatment
Throwing more light on the issue and to reassure the market of its commitment to continue to serve them, Mr Kalmoni said his outfit felt mistreated by the sudden termination of the dealership.
While insisting that SSAL was still studying the situation, he said the company felt limited in its legal options due to the lack of a law that protected firms in the trading business.
Nature of law
The Executive Director explained that while contracts for automobile dealerships were almost the same worldwide, local laws made the difference in how indigenous firms could be protected against foreign dominance.
“Normally, you the local have no say in the contract because they have an international contract that they give to you the distributors worldwide.
“The only thing they ever do in a contract of that nature is to tell you ‘please let us know if this thing contradicts with any local law,” he said.
“This is where we have the chance to say use our local laws to protect the local traders,” he added.
Unfortunately, Ghana does not have such laws that protect local trading companies,” he said.
That, he said, made it easier for foreign firms to jilt their local partners similar to the fate suffered by SSAL.
Relevance
Mr Kalmoni said such a law was necessary and must aim to retain jobs, protect domestic revenue and generally bolster the local economy.
The CEO of SSAL added that the law was necessary as it would help to encourage dealership and knowledge transfer.
“Maybe, the lawyers can come in to draft better laws for us to protect Ghanaian businesses and consumers,” Mr Nazir said.
Continuous supply
Mr Nazir also assured the customers of SSAL that the company would continue to supply Mercedes-Benz in the country by using legal means to access the cars.
He said the company would also continue to offer after-sales support services, as well as distribute spare parts to its customers nationwide.
Mr Nazir described the termination of the dealership as an unethical and bad business practice, noting that such acts did not augur well for business continuity.
He said the company would use all available legal means to serve its customers, which it developed over the past 25 years.