There are media reports that Mitsubishi Motors has cut ties with its exclusive partner in Nigeria, CFAO Motors, a privately-owned conglomerate with interests in construction and trading.
According to Societynow.ng, a local news blog in Nigeria said the immediate cause of the development were series of internal wranglings which led to the exit of key staffers including pivotal employee and group head human resources, Wole Ayanleke.
Akin Oyebode, the new Chairman of CFAO Group is reportedly looking at how to stem the tide dragging down the fortune of the company.
As it stands, Mitsubishi Motors represents 70% of the company’s gross revenue, there is no information as to whether steps are in place to get back the relationship that has transpired over decades.
CFAO Motors Nigeria was set up in 1920, the company has been the exclusive Nigerian distributor for Chevrolet, Mitsubishi as well as Michelin tyres across Nigeria.
The Mitsubishi franchise was operated using Massilia Motors, a joint venture between CFAO Group and the Chanrai Group. The JV was consolidated under the CFAO group, Massilia Motors is the sole distributor of Mitsubishi Motors Nigeria.
It is unclear whether Chanrai Group is the one operating the franchise and whether Massilla Motors would cease to exist as a result of the latest development.
Neither CFAO Group nor Mitsubishi Motors can be reached for comments at the time of writing this report.