Honda dealer denies wrongdoing

Honda dealer denies wrongdoing

TANGERANG (JP): The sole dealer for Honda motorcycles here, PT
Wahana Makmur Sejati (WMS), has defended its decision to
terminate its contract with four motorcycle repair shops
belonging to businessman Napendy.

In a statement made available to The Jakarta Post over the
weekend, WMS managing director R. Budiman said Napendy had
breached an agreement between the two parties, which bans a
partner of WMS from opening and operating a repair shop without
the main dealer's consent.

"This is not the first time he (Napendy) tried to step over
the line. Previously, he had twice done the same thing," Budiman
said.

Napendy admitted to having operated a fifth repair shop, but
insisted that it was not necessary for him to seek WMS's approval
because the new workshop served any make of motorcycle.

Budiman said Napendy had agreed to accept the consequences of
his decision to open a unauthorized repair shop at a meeting
between the two sides on Nov. 28 last year.

The termination of the contract has reportedly sparked anxiety
among mechanics working for Napendy, but Budiman said he would
find positions for any of them who wished to move to other
authorized repair shops under WMS's auspices. (amd)