Report: Mahindra Claims Importer Relationship is Over

If any press is good press, then Mahindra will have no complaints. The Indian automaker is claiming its relationship with importer Global Vehicles U.S.A. is over but the distributor has countered by saying Mahindra cannot end its signed agreement on a whim.

It has been an arduous journey for Mahindra, Global Vehicles U.S.A., and the dealers that have signed franchise agreements to sell the small diesel trucks. A press release on Mahindra's U.S. Web site, which appears to come straight from corporate in India, says verbatim: "Mahindra's relationship with Global Vehicles Inc (GV) has ended, the agreement dated 26th September 2006 between Mahindra and GV having terminated." After almost four years, it seems the long-time supplier of farming equipment is ready to conclude its professional relationship as it and Global continue to battle in court over the delayed TR-series trucks.

When queried about the aforementioned press release, however, GV says "such attempted termination is invalid under applicable laws of the United States and the State of Georgia, something which Mahindra continues to disregard." In another statement to Automotive News, GV spokesperson Max Butler states they are "in the process of taking orders and updating all floor plan agreements in anticipation for Mahindra to provide Global Vehicles with the initial production date." Sounds like it's business as usual at Global headquarters.

Global Vehicles has signed over 300 dealers to sell Mahindra trucks and spent $35 million in preparation for distribution. Although the original agreement between Mahindra and GV is dated 2006, the trucks only just received EPA certification earlier this month after the trucks underwent emissions and crash-safety changes. The ultimate sale date is supposed to be December but, in all likelihood, we haven't heard the last from the two jousting parties.

Source: Automotive News (Subscription required)

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