Mahindra and Mahindra’s announcement that it has terminated its four-year contract with Global Vehicles USA for the import and distribution of its pick up trucks has been refuted by the Georgia-based company.
In a statement issued by Global Vehicles’ last week, spokesman Max Butler said the claim was “inaccurate”.
“While it is true Mahindra attempted to terminate the exclusive Distributor Agreement with Global Vehicles after Global Vehicles filed an arbitration demand seeking to compel Mahindra to deliver vehicles to its dealers, such attempted termination is invalid under applicable laws of the United States and the State of Georgia, something which Mahindra continues to disregard,” said the statement.
Butler told Automotive Logistics News that he could not comment on the pending litigation his company has taken out against Mahindra.
Global Vehicles USA launched the lawsuit against Mahindra in July alleging that the carmaker has twice missed deadlines to launch its Scorpio SUV and pickups in the US despite Global Vehicles having spent nearly $35m in signing up around 350 dealers. The lawsuit seeks to ban Mahindra selling its vehicles through any other dealer in the US.
The Indian carmaker has announced that it has received long-awaited EPA certification for the pick-up trucks it plans to import into the US by the end of this year. Moreover, Global Vehicles said it remains committed to distributing vehicles to its dealers under the terms of its agreement with Mahindra as expeditiously as possible through the ongoing litigation between the parties or otherwise.
Mahindra has made no further comment on the situation.
The company has been trying to get its 2.2-liter, four-cylinder compact pickup truck to the US since in August 2009, but was delayed because it didn't receive regulatory approvals and had to develop the product to suit requirements.
