COBRA SCOOTERS LLC has filed a lawsuit against Taiwan Golden Bee Co. Ltd. (TGB) alleging that the manufacturer improperly broke a contract to supply ATVs and scooters to the importer/distributor.
Cobra Scooters, based in Kennesaw, Ga., imports and distributes scooters, ATVs and motorcycles, including products from TGB, Sachs and Brass Balls Bobbers & Choppers. The company serves approximately 300 dealers in the United States.
Taiwan-based TGB manufactures scooters and ATVs, and produces OEM parts for customers including Piaggio, Rotax, Polaris, SYM, Minarelli, Morini and Peugeot.
TGB has supplied Cobra Scooters with vehicles since 2004. In May 2008, the two companies announced an extension of the partnership whereby TGB would supply Cobra Scooters with product until 2013.
In the suit, filed April 6 in California Northern District Court, Cobra Scooters President Bill Peirce alleges TGB President George Lin recently cancelled the year-old agreement without cause.
As Peirce explains to Dealernews: "We had a five-year contract with these guys to be a supplier for us, and the president of the company, George Lin, decided he wanted to do his own importation to the U.S., didn't want us selling similar products, and decided to cancel the agreement without cause. But he can't do that, so we filed suit."
Peirce says the suit seeks simply for TGB to honor the supply agreement. "Personally I hope TGB just comes to their senses and would honor the agreement," Peirce says. "It doesn't make any sense to not want to sell us any scooters."
Cobra Scooters' suit names TGB, George Lin, Stanley Sha and Soule Blake & Wechsler as defendants. George Lin is president of TGB, Stanley Sha is TGB Senior Marketing Coordinator, and Soule Blake & Wechsler (SB&W) is an OEM and custom engineered components specialist based in Stamford, Conn., with a 30-year operating history in Taiwan and China.
SB&W is named in the suit because Cobra Scooters alleges SB&W imported product for TGB to display at Dealer Expo in Indianapolis, and that one of the products imported was to have been an exclusive to Cobra Scooters.
—Submitted by Guido Ebert