Ford stuck with Team Kiwi Racing sponsorship

Ford Motor Company NZ has been knocked back in a bid to pull out of a sponsorship deal with V8 Supercar outfit, Team Kiwi Racing.

The three-year deal, involving livery, sponsorship money, loan cars and vehicles at a nominal cost, was due to end in January 2010.

But last month Ford said it was terminating the agreement, citing what it said was an insolvency event, in breach of their contract.

TKR had been served with a statutory demand for $31,500 by Caleta Street Race Management, the organisers of the Hamilton street race in July, and liquidation proceedings had been started.

Ford went to the High Court in Hamilton two weeks ago-- two days before the major Bathurst Supercar event—seeking interim relief to bring the agreement completely to an end.
It wanted to restrain TKR from using Ford livery, or indeed to be in any way associated with it, and sought the return of its vehicles.

If granted, the injunction would have prevented TKR racing under Ford colours.
TKR countered that the statutory demand and liquidation proceedings should never have been started.

A compromise had been arranged with Caleta, but Caleta’s solicitors had not been notified and started liquidation proceedings in error.

Ford also claimed that loan vehicles had been misused and cars supplied at minimal cost for display purposes had been sold for road use.

TKR said that it had complied with the terms of the agreement in relation to the loan cars, and the display cars had been made roadworthy before being sold.
Ford said such activities indicated a company in crisis.

Justice Patrick Keane said the question was whether there was an insolvency issue on which Ford was entitled to terminate.

He said that the liquidation proceedings had been withdrawn.

On the evidence, he said, Ford could not assert the breach of contract on which it relied.

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16 Comments & Questions

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Maybe Ford should be ensuring that this only NZ based team is competitive. Instead of trying to pull out why dont you ensure these guys have the resources and car to be up there with the best. Come on FORD get with the team. Maybe I and other ford owners may not support you in future!

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I drive a Ford and was very proud that TKR went to Ford instead of Holden. Isn't it about time that you put some better funding in place for the only Kiwi Based Team and help them get the Car and Team to be competitive. Stop wasting TKR's time and funds in going to court and making their already hard road harder....

Maybe we should all leave our Fords and change to Holden if this is the type of support Ford has to TKR.

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Ford needs to protect its brand and lets face it TKR has had a chequered past with funding and legal action for non payment of accounts.

If Ford NZ want to continue to support motor sport then maybe they should sponsor one of the NZV8 cars. That series looks very competitive and the money Ford NZ is providing TKR would go a long way in the NZV8 series and get better exposure locally for the Ford brand.

Those Ford owners that vote with their feet are the fair weather friends.

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May I respectfully point out to Jason that Ford themselves could be regarded as no more than Fair weather friends in their treatment and support of TKR.
"When the going gets tough, the tough get going" is a common 'saying' and in this case, Ford NZ seem to want to get going, but in exactly the wrong direction. Why don't they get in behind this team full noise and support them to the hilt.? Could it be a similar sort of thing with Ford NZ as it is with Ford Australia where it is no secret that Ford Australia are actively withdrawing from V8 Supercar support. If that is the case, Ford NZ should come right out and SAY it instead of making others look like the bad boys.

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I blamed FORD for dumping Dick Johnson because He was good, . . I am angry with Ford NZ because they have let David John go so far down.
The Bernard Gillon (Jennian Homes) hostile take over attempt was the point David John should have walked away and let (eg) Paul Cruickshank, or Roland Dane run TKR. David John would be good as a marketing manager, but He fails greatly at Finance and PR and talent scouting. If David John really cared about TKR keeping a presence in V8 Supercars, He would deal all his controls and licence to a Paul Cruickshank Racing or Stone Brothers Racing with John McIntyre behind the wheel.

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TKR is the laughing stock of pitlane and would not even be competitive in the 2nd tier Fujitsu series. This team is a joke and no wonder Ford wants to have nothing to do with it. Where a new FG for next year is coming from, who knows. Time for DJ to move on and stop wasting everyone's time.

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Thank god FORD has come to the sence that the owner of the team is a playfull person of the truth. Does he own the car no as Scott brought it and DJ is paying it back to own it as no one wants to deal with him.

To all you people saying ford should support it, you don't know half the story.

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Good on Ford actually, TKR are a poor excuse for a V8 Supercar Team, don't get me wrong, I fully support Kiwis and their endeavours for sucess but how long can one sponsor put up with antics TKR pull race after race. Look at Paul Cruickshank Racing (most of them are kiwis), put in the money, got some great drivers and they are now really getting up there in the V8 field! GO PCR!!!!

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It is amazing to see what some people write.. Are any of you actually invovled with a V8 Supercar team??? Do you actually know what goes on behind the scenes... No I dont think so or you would sit here and judge.. About things you dont even know or understand... Give TKR a break and stop making a hard situation harder with all the negative crap... The team is making positive steps forward... So back off and leave the team alone....

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There isn't much Kiwi left in Team Kiwi Racing unfortunately. David John is an aussie, the team is based on the gold coast, they had an aussie driver at the last round and will have a middle eastern driver at the next round in Bahrain. This goes against John's previous assertions that team kiwi was about developing kiwi talent. Now he states it is just about haveing kiwi sponsors.

Kiwis can make it very well in Aussie Supercars - look at Stone Brothers, Paul Cruckshank Racing, Tasman, plus other top level drivers - but TKR are no longer the brand we need representing us with David John at the helm. He has annoyed basically all the other teams in pit lane, as well as abusing the support shown by the NZ public.

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The concept of Team Kiwi Racing is a wonderful thing..

But in reality after being on tour at Bathurst with TKR in 2007 and listening to David John criticising all in sundry for the Teams financial problems...in front of Ford representatives, it just proved to me he's the wrong man for the job.
As for Ford supporting them......how much money should you feed into a under capitalised venture?........it's not good business sense.

With the financial issues the 3 car manufacturers in the States.are having..
Money is tight everywhere.You need to get a return for your investment. Bad publicity with TKR aint doing it.

As for you so called Ford fans threatening to change to Holden......
Your not Passionate ,Ford FANS!
I'm on my 5th Falcon................................TRUE BLUE ....for life.
GO JUMP THE FENCE AND BUY A BARINA!!
THATS WHAT YOU ALL DESERVE !!!

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Good on Mr John for telling it how it is. I respect him for being very open regardless if he offends some people who do not want to hear the truth or do not want others to hear the truth.

I beleive TKR will be far better off without Ford regardless if they have Holden support going forward or not.

Fords antics are highlighted by them failing in the court action they took against TKR recently and the Ford Performance Racing issue back a few years ago where FPR made all these allegations against TKR but never took TKR to court.

If Ford were so correct and TKR were so wrong then Ford would have won the court case not lost it as they did recently and in FPR's situation if they were owed so much money as they lead us all to believe they were why did they not take TKR to court? You must ask yourself this regardless of who you support.

Ever since TKR joined Ford they have had battles. while with Holden they simply got on with the job at hand.

I really do not care what car TKR drive as for me it is all about having a Kiwi team in the championship and supporting a team that in return provides (as they have over the last 10 years) numerous opportunities for Kiwi drivers to get a start in the Australian V8 Supercar Champiosnhip.

Keep up the good work TKR you have my support and congrats on your 10th year anniversary.

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I agree with Tickford,the concept is great however theres usually no smoke without fire.The team owner seems to have ongoing problems with suppliers ,sponsors and staff.The oportunity to exell using the only NZ based team and the entire countrys fan base seems to be compromised continuously by allegations and issues which wont go away. Ford lost there case against tkr in Hamilton,Jonny Mac gains Ford sponsorship,Ford NZ and Ford Australia both unhappy with their TKR connection.The FORD executives are on salary they can support who they choose without any predudice provided the deal is honoured, they give.There would have to be good reason to fire up their legal team to undo a deal I would think.The truths refered to so frequently..... well.....time will tell.

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GOD HELP US ALL IF TKR PUTS BAILEY BEHIND THE WHEEL OF ONE OF ITS FORDS HE WILL BE TOO BUSEY CHECKING OUT HIS HAIR DO I DIDNT KNOW THAT FORD MADE CHILD SEATS TO FIT SUPER CARS

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Why would Ford NZ continue assisting a team run by an Aussie sole director/owner whose greatest achievements are appearances in courts disputing unpaid accounts culminating in being placed in personal bankruptcy.
Ford NZ did assert their breach of contract clause,the following month, September 08.Vehicles supplied by Ford not sold by TKR were recovered and that was the end of that.
Ford were not stuck with anything more than several lost vehicles.Unlike their many creditors.

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Flathead

If you are going to post such comments on a public forum make sure you get your facts correct please.

I was involved with TKR as a sponsor when Ford NZ tried their shifty move to try and get out of their sponsorship deal which even the judge saw through what Ford was trying to do and ruled against Ford NZ in favour of TKR.

With Ford having the court ruling go against them I do not know how you can defend Fords actions as if you are you are saying the judge got the decision wrong.

I know for a fact Ford NZ did not even honour their full sponsorship to TKR. Furthermore you say Ford acted on their breach of contract in 08 but this is what the judge ruled against in TKR's favour.

The bankruptcy of Mr John personally did not happen till a year later in 09 at which time Ford had nothing to do with TKR anyway.

This whole court thing and Ford tyring to get out of their sponsorship contract with TKR was at the very same time Ford US was struggling and all Ford V8 Supercar teams in Australia were having their sponsorship amounts reduced and or cancelled for the years budget ahead. Just look at the comments from FRP, SBR, DJR and 888 re that very thing around that very time Ford tried to get out of the TKR deal.

Ford NZ's shifty actions were tried a year before Mr John was temporarily put into bankruptcy himself which was overturned 4 or 5 months later with an annulment.

TKR which Mr John owns 100% never stopped trading as the OA could see when they started looking at the business that it was a viable concern and Mr John should not have been bankrupted by the ANZ bank in the first place hence the annulment.

Ford did not lose a cent or lose any cars as you incorrectly say in your post above. In fact your comments re all these TKR creditors losing out is also false.

You can not get an annulment and leave creditors out of pocket. This simply can not be achieved. So again i suggest you get your facts correct next time you post here or on any forum in the future.

Again I reinforce TKR has never stopped trading. So to suggest creditors got burnt is once again false information being put out into the market place by people like you Flathead who simply do not know or simply want to paint a different story than the truth.

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