Team code: NM 37

Dr. Ram Manohar Lohiya National Law University

Clineme 5.0, Negotiation-Mediation (Prelims)

Negotiation Plan between

AdvaniWheels Ltd
&
Tato Motors Ltd

-On behalf of AdvaniWheels Ltd-

 Strong Points
• Professional Compatibility exhibited in the past: The initial supply agreement signed
4 years ago has led to lucrative outcomes benefiting both the parties as it is valued at
$40 million. It is to be noted that this was done solely based on informal
communications between Mr. Paras Tato and Mr. Gautam Advani indicating a
mutual trust and professional compatibility.
• Well Established Advani Credentials: AdvaniWheels Ltd. has built trust in the
public causing it to be their first choice. The name ‘Advani’ has become
synonymous with reliability and assurance. This has helped TATO Motors gain
recognition as well.
• Support of the Government: Owing to the large scale operations of Advani Taxi and
the push for EVs, multiple state governments have taken the recognition of the same
and sought to provide tax deductions which in turn pass on the savings to the
customers.
• Complimentary Qualifications of the Parties: The Advani credentials have helped
TATO cancel out the effects of producing expensive vehicles and parts of
CarbonFree™ technology cars. The innovative CarbonFree™ technology of TATO
Motors aids AdvaniWheels to maintain a stronghold on the taxi business. The two
companies working together will ensure their strong presence in the market.
• Future Business Prospects: The upcoming MotoGP Race seeks to bring future
commercial opportunities on a large scale. The exposure expected and the hype
around a “green” MotoGP will aid both the companies.

Weak points:
• Friction Between the Parties: In the light of the recent mishap with the older
catalytic converters, the emergency meeting called by Mr. Gautam Advani
displayed signs of miscommunication and inability to arrive at a concrete solution.
The short term and long term prospects of ‘Advani’ Taxi are shaken up requiring
immediate redress for mutual benefits.
• Time Limitation: The much awaited MotoGP is barely six months away and due to
the volume of repairs to be done i.e 250 vehicles, there is a significant crunch of
time. Failing to complete the task in time will cause irreparable losses to both the
companies.
• Lack of Warranty and Indemnity Clause: The extreme co-dependence between the
companies and a lack of fail safe mechanism leave them in a lurch should either of
the parties fail to meet its obligations. The lack of formal contracts in the past have
landed the parties in a serious mishap detrimental to both their futures.
• Dependence on CarbonFree™ as the Unique Selling Point: CarbonFree™ is the set
differentiating factor between ‘Advani’ Taxis and its competitors. The shift in
consumer preferences to eco-friendly cars coupled with tax benefits is the locus of
success of ‘Advani’ taxis.

Needs:
• To have all of the defective CarbonFree™ fleet repaired reasonably before the
upcoming MotoGP Race.
• To have an exclusive long term possession of TATO’s CarbonFree™ technology.
• To create a temporary working arrangement for the next 6 months ensuring that
production and repair of vehicles and all the other operations take place efficiently.

Interests:
• Being the ‘taxi’ sponsor for the MotoGP Race : Timely repair of cars will provide
that ‘Advani’ Taxi with a chance to become the official taxi sponsor for the same
which would bring significant media exposure.
• Preservation of the Unique Selling Point: CarbonFree™ technology should be
continued to be associated with ‘Advani’ taxis as it directly plays into the consumer
preferences building a large customer base pan India bringing large profits.
• Clarity in Terms and Conditions: Due to the previous informal nature of
communications between the CEOs, a gap in dealings of the companies was
created due to the lack of warranty and indemnity clauses. To clear these
ambiguities, a clear temporary working arrangement is sought.
• Continuation of Tax Deductions and Benefits provided by the State Governments :
The tax deductions provided by the government on EVs aid in cutting down the
operation costs in turn reducing the taxi fares for the consumers. Since cheap prices
have helped in increasing the demand for ‘Advani’ taxis, these tax deductions
should persist.

Objectives:
• Considering the friction between the parties, creating a conducive environment for
the parties to be able to work together for upcoming MotoGP Race.
• To devise a working arrangement determining general management of the repair
work cost burdens of the repairs, setting indemnity and warranty clauses, setting a
fail-safe mechanism and ensuring maximum productivity with minimum
obstructions
• To secure commitment from TATO Motors with respect to continuance of exclusive
supply of CarbonFree™ pursuant to the 6 month period and get assurance that the
defects in catalytic converters are rectified for good.
• The companies shouldn’t be overburdened with the costs they weren’t obligated to
bear in the first place and arrive at a mutually beneficial solution.

BATNA:
• Approaching the State Governments for monetary aid such that timely replacement
of the rest of the fleet is done considering MotoGP’s potential for tourism and
international repute.
• To approach other Green EV companies in the international arena or investors
ready to provide resources in the short run in the public conveyance sector.
• Accept the delivery of 125 repaired fleet of ‘Advani’ taxis and seek an assurance
that they provide monetary compensation for all the loss suffered.
• To gradually replace the ‘Advani’ Taxis line with the closest green substitute.