U.S. Companies Fight over Distribution Rights of Chinese Machines

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JACThe embattled former CEO of Plastech Engineered Products Inc., Julie Brown, is already in court once more after six years her company liquidated its assets.

According to recent reports, it appears that brown is now seeking for justice after her company’s ties with another Chinese carmaker suffered due to a third entity.

The company of Ms. Brown is seeking all legal remedies and has sent her representatives to work on the necessary documents needed. The group has already issued a complaint to district court of Detroit last Oct. 21 against WM Genentech Automotive Corp and is just waiting for the succeeding steps.

The complaint came after a situation where GreenTech entered into a contract this year to distribute JAC Motors’ electric cars, despite prior agreements that Plastech will have exclusive privilege of doing such.

Despite this, legal representatives of Green Tech disclosed that Plastech has refused to furnish them a copy of the document indicating such agreement with JAC exists. The Chinese company on the other WM GreenTech Automotive Corp claims the contract does not exist.

The complaint filed last October indicates that Plastech holding signed a guideline, which stipulates in October 2010 to authorize Plastech to distribute passenger electric vehicle made by JAC to U.S. dealers. Plastech is accusing Greentech that it has been partner with JAC since April 2013. This has derailed previous agreements and put everything in jeopardy, according to Plastech’s representatives.

Plastech is currently in the process of identifying how much money they will be seeking to make up for damages it incurred from the intrusion of Greentech. It posted a statement previously stating that it has potentially lost at least $4 million. This is from a statement issued by the senior partner representative of Plastech, Sommers Schwartz, in the case at Detroit area law firm.

Plastech Holding has invested millions of dollars just to hire skilled engineering firms and introducing U.S. dealers to JAC Motors. Kochanowski has expressed the dismay of the whole company as despite their good intentions, they are now carrying a burden.

The October claim shows how GreenTech violated Plastech’s despite knowing everything what is happening. McInerney assisted in raising a significant amount of funds and interest from U.S. automobile dealers and dealer groups for the JAC passenger vehicles to be distributed by Plastech.

“They knew perfectly well that we had an agreement and interfered with it,” Kochanowski said.

GreenTech however was quick to rebut the statements given by Plastech, stating that, “it would abide by an agreement, if one existed.”