Auto News

American Distributor Sues M&M

By Motortrend India Staff   |   16 June,2010

Atlanta based company, Global Vehicles, is suing Indian automaker Mahindra and Mahindra for delayed launch of its pick-up truck.

The American company, which signed an exclusive distribution agreement with M&M, has filed a lawsuit before an Atlanta District Court and alleged the Indian company of unreasonable delay in the pick-up truck launch.

Global Vehicles, in the lawsuit filed on 14th June, has revealed that it spent around $35 million while preparing for the launch of Mahindra pick-up trucks in the US. This also includes the initial distribution appointment fee of USD 8.5 million. Apparently, the US dealers have spent close to $60 million in franchisee fees.

M&M had planned to launch the pick-ups in early 2009 and now the dates have been pushed to late 2010. The American company has also started arbitration proceedings against Mahindra.

Global Vehicles, in its lawsuit, has also requested the court to ban M&M from selling its vehicles in the US through another dealer.

The two companies had signed an agreement on September 28, 2006, which stated that Global Vehicles would become the exclusive distributor of Mahindra vehicles in the US.

Related Content