Franchise Owner Takes Nissan to Court

Inman Square, home to an eclectic array of coffee shops and eateries, has never dealt with America's notorious corporate culture.

But as a local car dealership faces extinction, the square is learning to cope with the bureaucracy of a multinational company.

Cambridge Nissan has been surrounded by Inman's various coffee shops and restaurants since it first rolled up its garage doors 26 years ago.

But its longevity did not stop the Nissan Motor Corporation of America from issuing the franchise a termination notice earlier this month.

According to a Nissan spokesperson reached in Los Angeles yesterday, the notice will force the closure of the dealership's sales, parts and service departments, leaving nothing but memories for franchise owner Nai Nan Ko.

Unless the courts side with him, that is.

Ko hopes to take the parent corporation to federal court, claiming that no part of his franchise contract has been violated.

As he relaxed in an office decorated with a few jade dragons, some posters commemorating recent Super Bowls and other hints of a life divided between two cultures, Ko explained how he came to own the Inman Square garage.

The Taiwanese native came to the United States in 1968 with $300 in his pocket. After studying mechanical engineering at Boston University and working for several years in a repair shop, Ko bought Cambridge Nissan in 1984.

Unlike other venerable Cambridge establishments like the Tasty, Mr. Bartley's Burger Cottage and Keezer's Classic Clothing, all taking shoppers on a mystical voyage to the 1950s, Ko's dealership does not pretend to sell history.

Like most car dealerships these days, the shop--located at 1280 Cambridge St.--has a showroom full of sparkling '97 models and is covered wall-to-wall with carpeting.

Restricted by its urban location, Ko's business has been unable to expand its sales enough to satisfy its parent corporation.

A Nissan official, who initially confused the Inman Square dealership with a troubled branch in West Virginia, argues that Ko does not reach a specified percentage of the regional market.

Ko recognizes that the corporation is facing a contracting industry and is forced to cut its more inefficient smaller operations.

"Just like gas stations, small guys are getting forced out of business," he says.

But he does not believe this justifies terminating his contract. If the Cambridge market can not support the dealership, he says, he will close the business himself.

Ko also believes he has drawn more business than the minimum required by his contract, an argument he hopes will be persuasive in court.

While sales at the dealership are not as high as he would like, the parts and service center is very successful, he says.

Ko's operation is the largest parts whole-saler in Boston, grossing over $2 million each year.

As Ko watched employees moving cars on and off hydraulic lifts this week with the efficiency of a pre-med switching colored pens, he says he feels betrayed by the company.

"When you sign an agreement like this, it's like signing a marriage license," Ko says. "These guys, they only like me when I'm young and pretty."

Other corporations are choosing different strategies to cope with the changing car market.

Instead of terminating franchises, Ko says that General Motors is buying out smaller dealers. Toyota, a corporation which, Ko says, sees the parent company and the dealer as one family, is cutting a very small number of dealerships.

While Ko enjoys working in Cambridge, the urban environment and tight-knit neighborhoods make it difficult to expand business.

"Cambridge just doesn't have a place where you can get two or three acres to put up a dealership," he says.

As they hustled around the shop on Monday, most of Ko's employees said they are very happy with the way he is handling the situation.

When Nissan gave him the termination notice Ko immediately held a meeting with all of his workers to discuss the situation.

And while they all have a deep respect for Ko, some employees feel he is being too nice to the corporation.

"I'd be a little more pissed of than he is," said one mechanic who asked not to be named.

Ko and his lawyer feel that they have the upper hand in their ongoing legal battle with Nissan.

Later this spring, the case will be heard in federal court.

In the meantime, Ko continues to question the values of his parent company.

"Sometimes things happen and you just have a gut feeling that they aren't right," he said

When Nissan gave him the termination notice Ko immediately held a meeting with all of his workers to discuss the situation.

And while they all have a deep respect for Ko, some employees feel he is being too nice to the corporation.

"I'd be a little more pissed of than he is," said one mechanic who asked not to be named.

Ko and his lawyer feel that they have the upper hand in their ongoing legal battle with Nissan.

Later this spring, the case will be heard in federal court.

In the meantime, Ko continues to question the values of his parent company.

"Sometimes things happen and you just have a gut feeling that they aren't right," he said