Holland Car, Lifan Motors in dispute in Ethiopia

Holland Car Plc, the first automobile assembly company in Ethiopia, has entered into a bitter dispute with its Chinese parts supplier and partner, Lifan Motors.

Tadesse Tessema, General Manager of Holland Car Plc, declared in a press conference held last Friday, that Lifan Motors has demanded to take over Holland Car and threatened to terminate contracts.

Tadesse said that this was against Ethiopian law, adding that Lifan "has been acting in a way that has hurt Holland Car's reputation, built over years of hard work. We are now planning to take the case to a court of law."

The main source of the controversy is said to be the drop in procurement by Holland Car of parts from Lifan Motors last year due to the foreign exchange shortage that hit Ethiopia.