Auto News

Global Vehicles to Place $35 Million Order with M&M

By Motortrend India Staff   |   26 September,2010

Global Vehicles, Atlanta based distributor, said it plans to place a $35 million-plus order for pick-ups from Mahindra & Mahindra, the Indian automaker it’s in a dispute with.

The order, which is going to be placed on Friday, will comprise an unspecified number of TR20 and TR40 pickups, Global Vehicles said in an e- mail statement. Global Vehicles and about 350 dealers in 49 states have invested almost $100 million to sell the vehicles, it said.

Global Vehicles in June asked an Atlanta federal court to prohibit Mahindra, India’s biggest sport-utility vehicle maker, from conducting sales in the US with any other dealer, saying that M&M “in bad faith” engaged in protracted contract negotiations for services relating to regulatory emission tests. Mahindra, which has said that its agreement with Global Vehicle has expired, wants to have the suit dismissed.

Pawan Goenka, president of Mahindra’s automotive and farm equipment unit and Mahindra spokeswoman Roma Balwani were unavailable for comments.

M&M tried its best to keep the Global Vehicles relationship afloat, it said yesterday in a statement on its website. The Indian company still wants to sell vehicles in the U.S. In August, the automaker said its trucks won US emissions approvals. The company’s plans to enter the U.S. have already been delayed by more than a year.

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