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Mahindra’s Bid To Enter U.S. Market Unraveling

Feud with erstwhile distributor deepening.

by on Oct.20, 2010

Will Mahindra's Pik-Up ever make it to the U.S. market?

The feud over Mahindra & Mahindra’s bid to sell vehicles in the U.S. is apparently deepening – and threatening to scuttle or at least delay its long-awaited launch in the American market.

Global Vehicles USA Inc., which considers itself the exclusive U.S. distributor of Mahindra pickup trucks, called on India-based Mahindra & Mahindra to begin building vehicles for sale in the United States and commit to a launch date.

But there’s a growing likelihood that any decision over who will actually represent the Indian maker in the American market will have to be decided in court.

A firm launch date would bring the Indian-based vehicle builder back into compliance with the arbitration clause of the distribution agreement between the two companies Global Vehicles said in a statement.

“Nearly 350 dealers have been ready to sell Mahindra trucks for more than three years,” said John Perez, chief executive officer of Global Vehicles.

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“If Mahindra executives were being truthful when they said that the trucks would be on sale by the end of the year, they should honor that commitment so dealers can start earning back the tens of millions of dollars they have invested in the brand.

“Binding arbitration will decide if Mahindra lied to Global Vehicles and our dealers about the status of the trucks and whether they broke the law when they attempted to arbitrarily terminate our distribution contract,” Perez added. “In the meantime, Mahindra is legally – and morally – obligated to conduct business as usual,” the statement said.

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Mahindra Using Loophole to Abandon U.S. Distributor

Indian pickup maker and erstwhile American distributor facing legal battle.

by on Sep.09, 2010

Mahindra's launch of the Pik-Up has so far been delayed four times.

With its planned American debut still indefinitely delayed, Indian automaker Mahindra is taking unfair advantage of an escape clause in its contract with U.S. distributor Global Vehicles USA to terminate their relationship, GV USA CEO John Perez claims.

Perez says Mahindra is attempting to claim exclusive ownership of the distribution and sales channel ahead of the arrival of its small diesel pickup in the United States, a development that has been expected for the last 18 months.

Mahindra officials in India did not respond Thursday to requests for comment.

GV USA and Mahindra are fighting in arbitration and in federal court over repeated delays getting Mahindra’s clean-diesel pickup certified for sale in the U.S. At the same time, Mahindra has issued two press releases stating that its relationship with GV USA has “expired.”

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Mahindra’s clean-diesel pickups were expected to go on sale in the U.S. by the first quarter of 2009 but their arrival now has been pushed back four times; the latest on-sale date is reportedly this December.

(Click Here for TheDetroitBureau.com’s review of the Mahindra Pik-Up.)
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