posted
The July 2008 issue of "Signs of the Times" came in today and I just got through reading the "Editorially Speaking" column by Wade Swormstedt.
quote: Nissan North America Inc. intentionally put Collins Signs Inc. out of business and never planned to pay for $3.5 million in signage. Thus spoke an Alabama District Court jury, on May 8, in assessing a $13.8 million promissory fraud claim that included $10 million in punitive damages.
I'm ****ed.
You'll have to read the article yourselves.
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[ July 03, 2008, 02:07 PM: Message edited by: Glenn Taylor ]
posted
Those big corporations can really hang you out to dry, and not even give a damn. They know they can have several more years of grace during court fights that the company might enter into, if they could afford it.
Personally, I think Collins Signs messed up by letting them get that much in debt to them also. I'd have made them pay so much every month or whatever, or stopped doing the work.
General Electric is another company I'll never deal with. Aside from their dealings with Iran, they've got billions of dollars worth of PCB cleanup at several superfund sites that they've been fighting cleaning up. Wildlife, as well as human life could be endangered; but they don't care; they just want to make money. Not mine!
-------------------- Dale Feicke Grafix 714 East St. Mendenhall, MS 39114
"I can do all things through Christ, who strengthens me." Posts: 2963 | From: Mendenhall, MS | Registered: Apr 1999
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posted
oooooh THATS WHAT HAPPENED TO COLLINS! but before we jump on nissans ass. We need to go back and thing that maybe collins should have tighted those belt straps up. demanded some money and not let them get that far behind.
i cant find the story and hope im not jumping to conclusions
-------------------- You ever notice how easily accessible people are when they are requiring your services but once they get invoice you can't reach them anymore
The problem is that - according to the jury - Nissan never had any intention of paying the man for his work.
Collins may be guilty of not exercising perfect judgment, but that doesn't excuse Nissan of fraud and intentionally working to put someone out of business because the like someone else better.
At a minimum, the Nissan Board of Directors needs to fire the people responsible.
I've been in similar shoes when an individual acting as a broker (screen print industry) ran off with $30k. We found out later that he had done the same to several other companies including Standard Commercial (tobacco) where he got them for $250k.
We were doing contract work and were being paid on time as specified. Then one day he just disappeared with $1.5 million of other people's money.
posted
Although I have had dealings with John and his company in the past, I have no idea how good a business man he was. That is irrelevant based upon the intentional fraud by Nissan execs. and there should have been punative damages to send a message about such fraud. If upper management and stockholders did not know what was happening, they should have.
-------------------- Kent Smith Smith Sign Studio P.O.Box 2385, Estes Park, CO 80517-2385 kent@smithsignstudio.com Posts: 1025 | From: Estes Park, CO | Registered: Nov 1998
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posted
Wow.... and I've been eyeing a new Nissan Altima....Sounds like Nissan *pearl harbor'd* this company.
What was the purpose for them putting this sign company out of business?? Grudge? Just didn't want to pay? Arrogance? All of the above?
So, they did get damages from what you mentioned and won their case right? If so, minus the stress and headaches, I guess it worked out well in the end...they back in business?
posted
For anyone who's interested... a link to the story. I was a little skeptical at first that maybe Collins was unable to follow through on their promises, but it really does sound like they were torpedoed...
It was a little more complicated than Collin's just demanding money. That's exactly what they did and was one of the things that caused them to be in default of the contract...
quote: We need to go back and thing that maybe collins should have tighted those belt straps up. demanded some money and not let them get that far behind.
No, Nissan should be an honest company with integrity and honor. Any company with that status and position in the world has no need to be dirty and greedy.
Think about it. One sign could be hundreds of thousands.. For example. One sign for a casino in New Orleans was $750,000 bux.. The casino decided not to pay the monthly rent..
But they didn't know the sign man had a timer in the system that had to be reset somehow. The timer went out and the sign didn't come one any more. Didn't take long for the casino to pay up.
-------------------- Leaper of Tall buildings.. If you find my posts divisive or otherwise snarky please ignore them. If you do not know how then PM me about it and I will demonstrate. Posts: 5274 | From: Im a nowhere man | Registered: Jul 2001
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quote:The sign contract arose out of Nissan’s global re-imaging plan to makeover the Nissan brand image at all its dealerships, starting with those in the United States. Discord arose within the Nissan organization when its Purchasing Department decided to award the sign contract by competitive internet reverse bidding over the objection of the Nissan Brand and Market Research Department. Although the Nissan Purchasing Department was in charge of awarding the sign contract, the Nissan Brand Department was in charge of performing Nissan’s obligations under the contract. Nissan Brand manager Peter Bossis did not want the sign contract awarded by competitive bidding, but wanted it to go to Nissan’s exclusive sign supplier, Plasti-Line, Inc. of Knoxville, Tennessee, where one of Bossis’ former subordinates, Ken Williams, had taken a position after he retired from Nissan.
The scheme to defraud Collins Signs was orchestrated by the Nissan Brand Department. After Collins Signs won the competitive bid and was awarded the sign contract, Bossis immediately began taking steps to obstruct Collins Signs’ ability to perform it. Bossis and other Nissan Brand managers deliberately disregarded contract provisions that benefited Collins Signs and refused to allow Collins Signs to have contact with Nissan Dealers to explain the re-imaging program or to make sales presentations and take dealer orders, as the contract required. They refused to follow Collins Signs’ recommendations concerning sign applications to be in compliance with local laws and ordinances, causing delays and increased dealer costs. They created unreasonable dealer expectations by providing inaccurate information to dealers, which caused dealers to make unfounded complaints about Collins Signs’ installations of signs at those dealerships. They imposed obligations on Collins Signs that exceeded the contract terms Nissan Purchasing had negotiated. They required Collins Signs to build in excess of $4 million in finished goods inventory before dealer sign orders were submitted to trigger the company’s manufacturing obligation. They did all of this in deliberate disregard of Collins Signs’ manufacturing and inventory plan that was approved by Nissan Purchasing as part of the contract. They refused to pay Collins Signs’ invoices for sign installations completed as required by the contract. They created a cash-flow problem for Collins Signs, making it difficult for the company to pay its suppliers, installers and other creditors. They then used this problem they created deceitfully, to persuade Collins Signs to request a development cost deposit from Nissan. Once Collins Signs did that, Nissan used the deposit request its Brand Department solicited to declare Collins Signs in default under the sign contract. Bossis intended all along to prevent Collins Signs’ from performing the sign contract, to persuade Nissan Purchasing to terminate the contract with Collins Signs, and to re-direct the contract to his preferred sign supplier, Plasti-Line. Ultimately, Nissan Purchasing did exactly that, even though Plasti-Line was not the next-lowest bidder. After Plasti-Line replaced Collins Signs, Nissan converted and misappropriated tools, dies, molds, and design and manufacturing drawings belonging to Collins Signs, and valued at approximately $300,000.
Collins deserved far more than the $13.8 million they got. Of course, Nissan will appeal and drag this out for as long as they can.
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[ July 10, 2008, 02:18 PM: Message edited by: Glenn Taylor ]
Nissan Corporate should hold the Nissan Brand & Market Research Dept. fully responsible and fire everyone involved in the scandal.
Based upon the article you posted Glenn, I see this as a departmental issue within Nissan that should hopefully be dealt with firmly by Nissan front office.
I wouldn't necessarily blame Nissan and not purchase their product due to this departments fraudulent handling of this contract..... unless it can be shown that it went right on up to the top of Corporate.
Am I reading this correctly?
-------------------- Todd Gill Outside The Lines Potterville, MI Posts: 7792 | From: Potterville, MI | Registered: Dec 2001
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posted
Signs of the Times original column on the Collins bankruptcy (when Collins was suing Nissan for $50million) was published in November 2003. Nissan has had many years for their higher leadership to notice this multi-million dollar fraud their company committed.
You won't see any Nissans in our driveway.
-------------------- Frank Smith Frank Smith Signs Albany, NY www.franksmithsigns.com Posts: 807 | From: Albany, NY USA | Registered: Nov 1998
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posted
Ah.... yes, that does make a difference Frank....
Not good on Nissan's part. Well, glad to see that initial judgment goes to the plaintiff.
Typical of a large corp thinking they can squash the limited resources of the average Joe. I thought the Japanese had a higher degree of personal honor than that.....guess in the corporate world, $$ is king.
-------------------- Todd Gill Outside The Lines Potterville, MI Posts: 7792 | From: Potterville, MI | Registered: Dec 2001
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The day Nissan admits what it did, pays Collins back every dime due plus interest and penalties, and makes a very public apology is the day I'll consider buying a Nissan.
quote:Originally posted by Todd Gill: I thought the Japanese had a higher degree of personal honor than that.....guess in the corporate world, $$ is king.
They are Todd; the management probably twisted things around so that upper management didn't fully know or understand what was really going on. This is really sad.
-------------------- Ricky Jackson Signs Now 614 Russell Parkway Warner Robins, GA (478) 923-7722 signpimp50@hotmail.com
"If I have seen further it is by standing on the shoulders of giants." Sir Issac Newton Posts: 3528 | From: Warner Robins, GA | Registered: Oct 2004
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quote: I thought the Japanese had a higher degree of personal honor than that
It wasn't the Japanese officials. it was someone else in the line.. Those main guys only come around once in a while.. The way i read it...It was a rogue manager in one department going completely against company wishes. To me he is a traitor. I will guess he is or will be gone now that the lawsuit is lost. (was the subordinate a gay lover?) .
-------------------- Leaper of Tall buildings.. If you find my posts divisive or otherwise snarky please ignore them. If you do not know how then PM me about it and I will demonstrate. Posts: 5274 | From: Im a nowhere man | Registered: Jul 2001
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posted
I guess the manager wanted more bang for his buck... or maybe FROM his buck...
Seriously, this story was unbelievable.
-------------------- Bruce Bowers
DrCAS Custom Lettering and Design Saint Cloud, Minnesota
"Things work out best for the people who make the best of the way things work out." - Art Linkletter Posts: 6454 | From: Saint Cloud, Minnesota | Registered: Jun 1999
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