About a week back, Global Vehicles ordered US$ 35 million worth pickups from Mahindra & Mahindra. And finally M&M has replied to the request with a big as ever “no”. The Indian SUV maker has accused the Atlanta based dealer of “engaging in PR theatrics while pursuing an unnecessary lawsuit.”
In June 2010, Global Vehicles, which is Mahindra’s exclusive distributor for its pick-up trucks in the American market, had filed a lawsuit against Mahindra accusing the company of causing unnecessary delays in the launch of the Mahindra pick-ups. M&M had missed two deadlines since 2009 to launch its pick-up truck.
M&M has definitely sent a strong message when it said that the company would break all relationships with Global Vehicles and would find another means to markets its products in the USA. Mahindra further claims that Global Vehicles is working hard to damage its reputation while disrupting its attempts to launch their vehicles in USA.
Mahindra announced that it has decided to reject the order for pick-up trucks from former distributor Global Vehicles USA, Inc. The Indian car maker sees this order as another example of PR drama. M&M obviously see this as Global Vehicle’s attempt to manipulate the press to damage Mahindra’s reputation.
M&M also thinks that this is an attempt by Global Vehicles to distract Mahindra from pursuing other plans to bring its vehicle to the US market. As earlier stated in Mahindra’s September 24 statement, the contract with Global Vehicles has expired.
In light of this fact, Mahindra will be contacting U.S. dealers to make other arrangements for distribution. Mr. P N Shah, Chief Executive, International division, Automotive & Farm Equipment sector said, “Mahindra’s goal remains to bring its vehicles to the US market, satisfying the desires of US consumers and dealers alike.”
At this juncture, it is still not clear as when Mahindra would actually launch the pick-ups and when exactly would the pick-ups land in customers’ hands in USA. Let’s hope for the best.