Mahindra counters lawsuit by US distributor over delay in pick-up launch
30 June 2010
Mahindra & Mahindra today said it has filed a motion to dismiss the lawsuit by its US distributor Global Vehicles over the delay in the launch of the company's pick-up truck in the US market.
Global Vehicles USA Inc, the exclusive dealer for Mahindra's pick-up trucks in the US market, had filed a lawsuit against Mahindra in the US district court for Northern Georgia, claiming damages over the delay in the launch of the vehicle.
In its motion, Mahindra said the distributor's claims are without merit and that it would vigorously contest the lawsuit. Mahindra said the company was diligently working towards satisfying all US homologation requirements and that it intended to submit its final application as soon as possible.
"Mahindra has not intentionally delayed the process and has committed substantial amount of resources behind this effort. Mahindra would like to expeditiously arbitrate the matter. The fact that GV has agreed to extensions of the deadline, demonstrates that GV was well aware of the situation and its impact. Mahindra remains committed to launch its products in the US market," the motion said.
In its lawsuit, filed on 14 June, Atlanta-based GV had alleged that there has been inordinate delay in the launch of the pick-up truck and that the delay had caused huge loss to the distributor.
The GV lawsuit claimed close to $35 million investments by the distributor in preparation for the launch of Mahindra vehicles in the US and in the signing of around 360 dealers across the US.