The fight between Mahindra USA and Global Vehicles is not over yet. GV filed a lawsuit after Mahindra’s prolonged delays in launching its pickups in USA. Mahindra replied by cancelling the contract with GV at a time when its vehicles were approved by EPA. Now, sensing a missed opportunity, GV are fighting back by placing an order reportedly worth US$35 million for TR20 and TR40 pickup trucks from Mahindra to sell through its distribution network. This will also initiate introduction of the brand in USA. In their statement, GV say that they extended their deadlines several times for Mahindra and that the latter had replied by breaking their relationship. Either ways, hit the jump to read Global Vehicle’s statement for yourself.
Also Read :
Breaking News – M&M ends pact with its USA distributor, Global Vehicles Aug, 2010
Mahindra files appeal against lawsuit Jun 2010
Mahindra faces lawsuit against it in USA Jun 2010
Here’s what Global Vehicles is saying:
Global Vehicles believes that Mahindra purposely delayed the EPA certification process so it could invoke a contract clause that would allow it to walk away if the truck could not be certified for sale in the United States. Global Vehicles extended the deadline for certification three times, with the latest deadline set at June 11, 2010.
Mahindra submitted its certification paperwork to the EPA about 10 days after the June 11 deadline, and announced in an Aug. 20 press release that its vehicles were certified for sale. At the same time, Mahindra posted a two sentence statement on its website stating that its relationship with Global Vehicles had ended.
Mahindra demanded the clause at the eleventh hour before the contract was signed in 2006 because it expressly wanted to limit its losses if the trucks could not be certified for sale here. Earlier this year, well before the June deadline, Global Vehicles asked Mahindra to remove the clause because it was no longer applicable and they refused. Global Vehicles later asked Mahindra for another extension but was again refused.
“We trusted Mahindra when they said they wanted to cap their losses if the vehicle couldn’t be sold here,” said Perez. “We patiently waited and accommodated Mahindra through years of delays and kept an extremely powerful distribution network intact while the factory worked through the complicated task of meeting U.S. emissions standards. We did this because we believed we were all working toward the same goals. Now Mahindra is trying to change the rules. We delivered our end of the contract, and we’re ready to get down to business.”
[Jalopnik]
Discussion
No comments yet.