Global Vehicles USA, the Atlanta, GA. based company who holds the rights to sell Mahindra’s pickup trucks in the United States, has filed suit against the India-based company in federal court, citing delays in getting the trucks certified for sale in the U.S. The suit mentions that more than 350 dealers have been secured by GV USA, which has spent almost $35 million preparing for the launch, while Mahindra dragged its feet.
Mahindra is known for this type of practice; the trucks were set to launch in the U.S. in Q1 2009, and the date has been pushed back several times since. As of right now, the trucks are set to go on sale in December, and according to an EPA spokeswoman, Mahindra has yet to file its emissions certification paperwork with the EPA.
It is believed by some that Mahindra’s delay tactics are a ploy to get around its current supply agreement with GV USA, and talk to other distributors. GV however, is seeking an injunction to stop Mahindra from approaching any other potential distributors during the arbitration process.
A spokesman for GV USA declined to comment on the lawsuit other than confirming that one had been filed.
– By: Stephen Calogera