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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’s review of the Mahindra Pik-Up.)