US distributor sues M&M over delay

With Mahindra & Mahindra (M&M) missing two deadlines since 2009 to launch its pick-up truck in the US, the auto maker\'s exclusive American di
...

With Mahindra & Mahindra (M&M) missing two deadlines since 2009 to launch its pick-up truck in the US, the auto maker's exclusive American distributor has slapped a lawsuit against the company.

Atlanta-based distributor Global Vehicles (GV), in the lawsuit filed before a district court, has alleged inordinate delay in the launch of the truck, based on M&M's SUV Scorpio platform.

'M&M has learned that GV has filed a lawsuit in the US. GV has also initiated a separate arbitration proceedings. Mahindra believes these actions to be without merit and will contest them,' an M&M spokesperson said.

Trending Cars

Find more Cars

M&M and GV entered into a pact in September 2006 and Mahindra proposed to launch the pick-up truck in 2009. However, this got delayed over regulatory clearances and it revised the deadline to beginning of this fiscal year, which too was missed.

GV said in its lawsuit filed on June 14 that the company spent close to $35 million in preparation for the launch, adding, US dealers have also spent more than $60 million in franchisee fees for the right to sell M&M vehicles. It has also asked the court to prevent M&M from selling its vehicles through any other dealer.

However, an M&M spokesperson said, 'Mahindra remains committed to launching its products in the US market.'

First Published Date: 16 Jun 2010, 19:14 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.