GV Responds to Rejection of Mahindra Pickup Order

From the press release issued yesterday:


ALPHARETTA, Ga., Sept. 28 /PRNewswire/ -- Indian company Mahindra and Mahindra has improperly rejected a valid $35 million-plus factory order placed on Sept. 24 for U.S.-spec Mahindra pickup trucks, exclusive U.S. distributor Global Vehicles U.S.A., Inc. confirmed today.

"Global Vehicles and its dealers remain willing, ready and able to begin the sale of Mahindra vehicles as soon as they can be delivered," said Global Vehicles CEO John Perez. "We placed this substantial order in good faith because we want to get down to business and so do our dealers."

Mahindra issued a statement in India yesterday confirming that it rejected the order. But the company has not explained its motives for breaking the contract, especially its arbitration clause.

"Our contract with Mahindra requires disputes to be taken to arbitration and both parties are obligated to conduct 'business as usual' until there is a ruling," said Perez. "We initiated arbitration before Mahindra claims the contract expired and they should not disrespect the process and break the law by continuing to act in bad faith."

In addition to initiating arbitration, Global Vehicles is pursuing claims against Mahindra in U.S. Federal District Court to protect is contractual rights.

"We're grateful that this country has strong contract laws and statutes that protect big car companies from steamrolling their dealers and distributors," Perez said. "We're confident in our position because it's simple and it's the truth, and we look forward to hearing Mahindra's sworn testimony."

Global Vehicles believes that Mahindra purposely delayed the EPA certification process so it could invoke a contract clause that would allow it to walk away if the trucks could not be certified for sale in the United States. Global Vehicles extended the deadline for certification three times, with the latest deadline set at June 11, 2010.

Mahindra submitted its certification paperwork to the EPA about 10 days after the June 11 deadline, and announced in an Aug. 20 press release that its vehicles were certified for sale.

Mahindra demanded the clause at the eleventh hour before the contract was signed in 2006 because it expressly wanted to limit its losses if the trucks could not be certified for sale here. Earlier this year, well before the June deadline, Global Vehicles asked Mahindra to remove the clause because it was no longer applicable and they refused. Global Vehicles later asked Mahindra for another extension but was again refused.

Together, Global Vehicles and the nearly 350 Mahindra dealers it recruited in 49 states have invested almost $100 million to bring the rugged, affordable and fuel-efficient trucks to the United States.

Global Vehicles U.S.A., Inc., based in Alpharetta, Ga., is the exclusive importer and distributor in the United States of motor vehicles produced by the automotive arm of the Mahindra Group (www.mahindra.com), a $6 billion-plus diverse conglomerate.

SOURCE Global Vehicles U.S.A., Inc.

Mahindra Rejects $35 Million GV Pickup Order

A press release this morning indicates that Mahindra & Mahindra Ltd has rejected a USD $35 million order for the Indian made Mahindra compact diesel pickup trucks placed by its US importer and business partner, Global Vehicles USA.


The release goes on to state:

“Mahindra views this order as another example of Global Vehicles' policy of engaging in PR theatrics while pursuing an unnecessary lawsuit. This is Global Vehicles' continued attempt to manipulate the press to damage Mahindra's reputation. Mahindra also believes that this is an attempt by Global Vehicles to distract Mahindra from pursuing other plans to bring its vehicle to the US market.”

To read the entire press release, click here: Mahindra Rejects any attempt by Global Vehicles to order Mahindra vehicles as it is Invalid

Source: Mahindra

Breaking: Global Vehicles Order, Mahindra Pickups Here Within 8 Months

This press release just in from Global Vehicles:


For Release: Sept. 24, 8 a.m. Eastern

Contact: Jim Cain
The Quell Group
248-649-8900
248-231-9806

Global Vehicles to Place $35 Million Order to Support U.S. Launch of Mahindra Pickup Trucks

o Nearly $100 million investment by importer Global Vehicles U.S.A., Inc. and close to 350 Mahindra dealers rides on a successful launch
o Global Vehicles expects sales could reach $1.4 billion annually in four years
o Initial orders will be delivered to dealers in the Southeast, followed by other regions over the next eight months
o First-year sales volume could reach 30,000 units

ALPHARETTA, Ga., Sept. 24, 2010 – A $35 million-plus factory order will be placed today for U.S.-spec Mahindra TR20 and TR40 pickup trucks to begin the launch of the brand in the United States, exclusive Mahindra importer Global Vehicles U.S.A., Inc. announced.

Together, Global Vehicles and the nearly 350 Mahindra dealers it recruited in 49 states have invested almost $100 million to bring the rugged, affordable and fuel efficient trucks to the United States. Mahindra said in an August press release that it had EPA certification to sell the trucks, and they announced plans to begin selling vehicles in December.

“We are proud of the sales and service network we created to support the launch of Mahindra vehicles, and we look forward to bringing American buyers something truly unique in the marketplace – rugged, high-quality, clean diesel pickup trucks that can achieve nearly 30 miles per gallon,” said John Perez, CEO of Global Vehicles. “Our dealers are all seasoned auto industry professionals who will treat customers with honesty, integrity and respect. We built our business on these bedrock principles, which should be the foundation of every business relationship.”

Perez expressed confidence that Global Vehicles will prevail in pending arbitration hearings and court proceedings that the company initiated to force Mahindra to honor the terms of Global Vehicle’s distribution contract, which Mahindra inaccurately claims is no longer in force.

Global Vehicles believes that Mahindra purposely delayed the EPA certification process so it could invoke a contract clause that would allow it to walk away if the truck could not be certified for sale in the United States. Global Vehicles extended the deadline for certification three times, with the latest deadline set at June 11, 2010.

Mahindra submitted its certification paperwork to the EPA about 10 days after the June 11 deadline, and announced in an Aug. 20 press release that its vehicles were certified for sale. At the same time, Mahindra posted a two sentence statement on its website stating that its relationship with Global Vehicles had ended.

Mahindra demanded the clause at the eleventh hour before the contract was signed in 2006 because it expressly wanted to limit its losses if the trucks could not be certified for sale here. Earlier this year, well before the June deadline, Global Vehicles asked Mahindra to remove the clause because it was no longer applicable and they refused. Global Vehicles later asked Mahindra for another extension but was again refused.

“We trusted Mahindra when they said they wanted to cap their losses if the vehicle couldn’t be sold here,” said Perez. “We patiently waited and accommodated Mahindra through years of delays and kept an extremely powerful distribution network intact while the factory worked through the complicated task of meeting U.S. emissions standards. We did this because we believed we were all working toward the same goals. Now Mahindra is trying to change the rules. We delivered our end of the contract, and we’re ready to get down to business.”

Global Vehicles U.S.A., Inc., based in Alpharetta, Ga., is the exclusive importer and distributor in the United States of motor vehicles produced by the automotive arm of the Mahindra

In the End, It’s All About the Truck

Indian conglomerate Mahindra & Mahindra Ltd has made it clear that they no longer consider US-based importer Global Vehicles (GV) as a business partner, and have spent the last four months trying to sever their once amicable relationship with them. Recently, Global Vehicles’ CEO John Perez has spoken out, and has made it clear that he feels that Mahindra has abused elements of a contract which were negotiated in good faith. This all takes place while dealers look on and wonder if they will be speaking with Alpharetta or Mumbai once the dust has settled over this battle to sell the first India-made vehicle in the US.


Side with one company or the other if you will, but it all comes back to the truck. It may not be an earth-shattering vehicle. Maybe it’s not even worth fighting for, but without a doubt, it is a groundbreaking truck on many levels.

The recurring rally cry heard from nearly all of the Mahindra pickup lovers and haters out there is that the US market is primed and ready for a fuel-efficient, straight forward, reasonably priced, compact-to-midsize, diesel pickup truck.

After reading countless article comments and forum threads over the past three years, it has become crystal clear that Americans are ready for this product. It becomes equally clear that while there are plenty of fans dedicated to the Mahindra TR20 and TR40 pickups, there are many more consumers that do not care which manufacturer produces this type of vehicle. They just want the compact diesel pickup concept to become a tangible reality so that they can put their money down on it as soon as possible.

The he-said/she-said reports from both sides are likely to be silent for a while. Today, arbitration between Global Vehicles and Mahindra & Mahindra begins in International Court in London (per the original 2006 agreement). No matter how the arbitration is resolved; America has spoken, and we are ready for a new breed of small pickup trucks.

We want your truck, Mahindra. And we want Global Vehicles to supply reliable US-based support. But keep in mind that if you don’t make this truck happen soon, one of your established competitors surely will.

Global Vehicles - Mahindra Arbitration to Begin September 15th

India’s Business Standard is reporting that the battle which has been waged in quoted comments and press releases over the last three months between Indian SUV manufacturer, Mahindra & Mahindra Ltd, and their American pickup truck importer and business partner, Global Vehicles USA, will officially begin in court on September 15th.

It’s unfortunate that things have not gotten sorted out sooner, but now it seems to be ‘on like Donkey Kong’ in Georgia District Court.  How it all affects the December launch date remains a question unanswered.

Source: Business Standard

Updated: Mahindra Press Release on Motion to Dismiss GV Lawsuit

Another Update (6:46 PM EST)
Mahindra is demanding that Global Vehicles stops using the Mahindra name in it's marketing materials and on it's website and "avoid falsely suggesting an affiliation between Mahindra and Global Vehicles".  For the full story: GlobalAtlanta.com


Keeps getting more interesting by the minute...

MahindraTruckForum.com member, Mikeo, located the original press release regarding Mahindra’s bid to get the Global Vehicles lawsuit dismissed in US District Court as reported earlier today.

The release states that Mahindra opposes the legitimacy of the GV lawsuit on grounds that the contract between Mahindra & Mahindra Ltd and Global Vehicles expired automatically on June 11, 2010. Mahindra also states that negotiations to extend the contract were conducted but did not result in an extension.

We’ll wait for Global Vehicle’s response to this latest Mahindra communication. The soap opera continues.

Source: IndiaPRWire via Mikeo

Global Vehicles v. Mahindra News Forthcoming?

There are indications this morning that a Mahindra will publish a press release regarding actions taken to have the lawsuit brought against them by US importer, Global Vehicles USA, dismissed.

The following teaser was found on the web this morning however it appears that the actual press release it is linked to was published, then retracted by Mahindra:

Mahindra Completes Briefing on Motion to Dismiss the Groundless Lawsuit Filed ...
PRLog (Press Release) – Sep 07, 2010 – Mumbai 3 September 2010: On 28 June 2010, Mahindra & Mahindra (Mahindra) filed a motion to dismiss the lawsuit that ...

The lawsuit initiated by Global Vehicles over Mahindra’s failure to deliver US-bound compact diesel pickup trucks after multiple delays has subsequently been dismissed by Mahindra officials in various interviews.

Mahindra has also threatened that the lawsuit could possibly cause further delays in the arrival of the anticipated vehicles, and Mahindra has previously used a press release in an attempt to terminate their exclusive contract with Global Vehicles.

We’ll keep following this story as it unfolds. Stay tuned.

Mahindra SUV and Pickup Sales Increase 14%

Mumbai, India based, Mahindra & Mahindra Ltd, has released its August sales report indicating that full range domestic auto sales have increased 29% and sales of it’s SUVs and pickups have increased 14% over August 2009 figures.

The Indian utility vehicle maker, who is expected to sell low-priced, 30 mpg, diesel compact pickup trucks in the United States beginning in December of 2010, has been experiencing significant growth in 2010 despite parts shortages which have hampered full growth potential.

The anticipated US market Mahindra TR20 and TR40 pickup trucks are set to launch this December, and an SUV variant (Mahindra Scorpio) is rumored to launch sometime in 2011. US emissions certifications for the pickups were obtained in August and the Scorpio SUV has recently been seen testing in the southern United States. However, Mahindra is currently battling a lawsuit brought on by their US import partner, Global Vehicles USA, and Mahindra has not publicly indicated whether or not Indian production of the US bound vehicles has even begun.

Source: Mahindra