Friday, January 7, 2011
US Mahindra-Navistar Alliance: A Possibility
Over the last six months, Americans anticipating the launch of Mahindra’s TR20 and TR40 diesel pickups have instead witnessed a war of words played out in US courts, UK arbitration, and scalding press releases. The conflict between US based distributor, Global Vehicles USA (GV), and Indian industrial conglomerate and automaker, Mahindra & Mahindra Ltd (Mahindra), has played out like an epic Hollywood divorce.
The occasional glimmer of hope that Mahindra and GV could resolve their differences and bring TR pickups to market have regularly led to solemn disappointment for hopeful customers. The resulting rollercoaster ride has left some potential buyers barfing at the exit and others running to get back in line for another ride.
Recent statements by Pawan Goenka, automotive sector president of Mahindra & Mahindra, pours more fuel on the fire:
"There is always the possibility of having an alliance with Navistar in the US as we have an alliance with them in India already, but nothing has been finalized yet,”
Sentiment in the Indian press indicates that Mahindra does not have any interest in continuing it’s partnership with GV no matter how the legal battle ends. Mahindra officials refuse to comment on the lawsuit, and little word has made its way out of GV’s Alpharetta, Georgia headquarters in months.
Although Mahindra seems bent on bypassing the company who laid much of the groundwork for their US automobile entry (GV), they have consistently stated that they see the US as a key strategic market for their brand. Judging by their acquisition of Korean automaker, Ssangyong Motor, and the development of more worldly vehicles like the W201 SUV, Mahindra is on track for launching US products… some day.
Source: Business Standard