Mahindra & Mahindra is facing a lawsuit in the US from its distributor following delays to launch.
M&M’s exclusive US distributor, Global Vehicles has filed a lawsuit against the Indian firm before an Atlanta District Court, alleging an inordinate delay in the launch of the pick-up truck.
Go deeper with GlobalData
The company claims it is working as per its original schedule to launch its product in the US by December 2010.
“We are going as per (our) original plan for the launch of the pick-up truck in the US, but can”t say on the actual time of launch, as it will depend on the outcome of the litigation,” M & M’s automotive division boss Dr Pawan Goenka told The Economic Times newspaper.
Global Vehicles had claimed to have made an overall investment of USD103.5m along with franchisees to sell M&M’s pick-up truck based on Scorpio platform.
M&M, which had planned to launch the vehicle by the end of 2009, had missed two deadlines since, due to regulatory issues the newspaper noted.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIt had later set end-2010 as the possible launch date for the vehicle in the US. The company had said it was diligently working towards satisfying all US homologation requirements and intended to submit its final application as soon as possible.
In its lawsuit, Global Vehicles said that it had spent close to USD35m in preparation for the launch of Mahindra vehicles in the US and had signed with as many as 360 dealers nationwide.
Global Vehicles had also claimed that US dealers have spent more than USD60m in franchisee fees for the right to sell Mahindra vehicles and asked the court to prevent M&M from selling its vehicles through any other dealer or distributor.
