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Global Vehicles Withdraws Case Against Mahindra

By Motortrend India Staff   |   20 February,2011

Indian vehicle manufacturer Mahindra & Mahindra has announced that the case filed against it by Global Vehicles, its distributor for the US market, has been dismissed. Global Vehicle had filed litigations against M&M in a court in Atlanta, Georgia last year. Global Vehicles has withdrawn the case it had filed against M&M in the Georgia Federal Court in June last year.

“With these developments, Global Vehicles has failed in its attempts to involve Mahindra in multiple litigations before courts and administrative agencies in the US. Mahindra continues to believe that Global Vehicles’ claims in the arbitration are groundless and looks forward to presenting its defense in London later this year”, said M&M.

Mahindra had earlier chosen Global Vehicles to be its sole distributor of its pick-up trucks for the US market in 2007. Mahindra’s launch of automatic pick-up trucks got delayed beyond the scheduled period of 2009, following pending approval from the US government.

At a later point when the approval was granted, M&M said that the contract for supplying the pick-ups with Global Vehicles had expired and it will make other arrangements for selling its vehicles in the US market. Subsequently, Global Vehicles alleged M&M of playing foul, and filed multiple cases M&M. The US based company also claimed to have lost close to 60 crore for developing distribution channels to market these vehicles.

M&M had got the mandatory environmental protection agency clearance for its vehicles for the US market and plans to launch them. The company will announce pricing for its two trucks and the distribution strategy later.

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