Developing story: A dealer signed on as a Mahindra pickup and SUV franchise has filed a federal class action lawsuit against both US based distributor Global Vehicles, and Indian automaker Mahindra & Mahindra Ltd over failure to supply promised vehicles to prospective dealers.
From the complaint:
"Despite promising to import Mahindra vehicles for sale to the public through plaintiffs and members of the class, neither Global nor Mahindra ever imported any vehicles into the United States for distribution through its network of franchise dealers,"
The suit claims that GV and Mahindra have taken USD $60 million from dealers in franchise fees.
More to come on this breaking story...
Source: Courthouse News
Showing posts with label Global Vehicles USA. Show all posts
Showing posts with label Global Vehicles USA. Show all posts
Tuesday, April 19, 2011
Thursday, February 17, 2011
GV Drops Lawsuit Against Mahindra, Will Focus on Arbitration
Autoblog reports (via Automotive News) this morning that US Mahindra pickup distribution partner, Global Vehicles USA, Inc (GV) has withdrawn their US lawsuit against Mahindra & Mahindra Ltd over failure to provide TR20 and TR40 diesel-powered, compact pickups for US sales.
Apparently the lawsuit was dropped because the UK-based arbitration panel refused to rule on the case while an active lawsuit continues in the US. It remains to be seen how much more weight an arbitration ruling in favor of GV in the UK will carry over a win in US courts.
GV CEO, John Perez, is also claiming that the EPA data published last week does not reflect the 30 mpg figures that GV estimates the 2-wheel-drive TR20 pickups will achieve. It is unclear why the EPA only published data for the 4x4 TR40 pickup and not the supposed economy champ, 4x2 TR20. A 40% difference in fuel consumption between the two models seems like an incredible feat, but then it was GV who coordinated all of the US test vehicles and has first hand experience with Mahindra pickups on US roads.
Wednesday, December 22, 2010
Breaking: Mahindra Kills Deal to Build Reva Electric Cars in US
A short while ago, Syracuse.com published then retracted a story providing details of US-based company, Bannon Automotive LLC, filing a lawsuit on Monday against Mahindra Reva Electric Vehicle Co. and it's parent company, Mahindra & Mahindra Ltd (M&M).
Bannon Automotive (of Long Island, NY) has been working directly with Reva, the state of New York, and Onondaga County since late 2009 to establish a vehicle assembly plant in the Syracuse, New York area. The facility was to build US-market Reva electric cars from India-made parts kits, but it appears that those plans are on now hold indefinitely.
Reasons for the collapse of the Bannon/Reva deal read like a page straight out of Mahindra's dealings with their US truck importer and partner, Global Vehicles USA (GV). In June, GV filed a lawsuit against M&M claiming that they were purposely delaying EPA certification efforts to prepare a compact diesel pickup truck for launch in the US market. The lawsuit also asserted that Mahindra was effectively attempting to force an end to the exclusive import and distribution contract both companies had originally negotiated in 2006. It has been widely speculated that Mahindra decided that they were no longer interested in using a US partner to distribute the pickups, and were attempting to negotiate directly with dealerships established by GV.
Bannon Automotive's lawsuit accuses Mahindra of breaking agreements to give Bannon an exclusive license to assemble and sell Reva cars in the United States.
From the Syracuse.com article:
"This material change in the representations made by Reva and Mahindra signaled the death of Bannon Automotive", Bannon said in the lawsuit filed in Nassau County, where Bannon is based.
"Unfortunately, Mahindra/Reva did not deliver as promised," Bannon Chief Fiscal Officer Jordan Levy told the Post-Standard (Syracuse.com) by email Wednesday. "Accordingly, Bannon and its investors have been compelled to take legal action. Bannon will continue try and follow through with the project as planned. We remain committed to bringing an affordable, US manufactured electric vehicle to the American marketplace."
The lawsuit seeks to force Reva to give Bannon a license to make the Reva vehicle for the US market and to bar Reva from granting a license to anyone other than Bannon to manufacture and market Reva cars in the United States.Apparently Mahindra has been using the same playbook to coordinate their strategies with Bannon and GV. Bannon goes on to state that Mahindra had repeatedly delayed signing a definitive licensing agreement after their majority stake takeover of Reva in May. Bannon claims that Mahindra told them via email in August that they would not have a vehicle ready for them to sell in the US. Bannon claims that the August email was the last communication they have received from Mahindra.
Mahindra Planet will continue to follow the story. Please go to Syracuse.com for more.
Updated 7:15AM 23-Dec-2010: The Syracuse.com link is now live again: Electric Car Project for Onondaga County Collapses
Source: http://www.syracuse.com/
Monday, August 9, 2010
Collateral Damage: Dealers Caught in the Middle of Mahindra Pickup Delays
The BS Motoring article is here: Court battle puts a hold on M&M pick-ups
Monday, May 24, 2010
Mahindra Launch: Getting It Right
“It’s more important to get the launch right the first time rather than get hung up on a date. The launch in the U.S.A is a very significant step. It will give us only one chance.” – Pawan Goenka, President Automotive Sector, Mahindra & Mahindra
Nick Kurczewski interviewed Goenka last week for The New York Times. Although Goenka is still very non committal in his statements, he is “fairly confident” that the December launch date will happen. However, he does stress that the approach to the US market is far more important than the actual timing.
Kurczewski did confirm once again with Mahindra and US importer, Global Vehicles, that all EPA and crash tests are complete. All government approvals should be in place by the end of June, and production of the US-bound TR20 and TR40 pickups should begin in September of this year. This is a lot of “should”.
According to Goenka, Mahindra expects that the US market to grow again in 2011. This positive outlook is paired with Mahindra’s expectations of gaining 5-7% of the US market share with their compact diesel pickups. Mahindra still plans to introduce the Scorpio SUV (which shares it’s chassis with the TR20 and TR40) later in the year, and will eventually launch an all-new global luxury SUV currently code named W201 in the US.
Pricing for the TR20 and TR40 has still not been set. Goenka tells Kurczewski that a final retail price will not be established until the day before the trucks are launched. Curiously, this sounds as though dealers may not even know how much the trucks are going to sell for until after they actually have them on their lots.
Although this information does little to placate torch-carrying US Mahindra fans, an additional positive piece of news from the article is that Mahindra is actively working to establish a US assembly facility. Goenka indicates that Mahindra hopes to begin assembling vehicles in the United States six to eight months after sales begin.
The entire NYT article is HERE
Source: The New York Times
Friday, September 18, 2009
Mahindra Committed to Ultra-Competitive US Pickup Truck Market
MahindraPlanet has been continuing a dialogue with Global Vehicles USA’s Mike Geylin over the last two weeks. We’ll summarize all that has transpired:
MahindraPlanet posted our Open Letter to Mahindra on September 8th. The letter addressed concerns gathered from readers of this blog, and general commentary from around the net. The intent was to offer constructive criticism and solicit a response from Mahindra which we did receive.
Contact
As noted by our comment contributors (thanks joecallimachus and Anonymous) the GV/Mahindra website and contact email address had some issues. This was confirmed by Geylin:
Delays have plagued the Mahindra pickup launch. With my personal experience in heavy truck and bus OEMs and Tier 1 automotive engineering, I can relate to vehicle launch issues. All of my experience was with domestic product and companies with established history and infrastructure in the North American market. Trust me, it is difficult to launch a new vehicle domestically, I can’t imagine the logistic challenges Mahindra is facing. No specifics were discussed, but it is clear that GV and Mahindra want their trucks to be the best possible product they can put in front of US consumers.
MahindraPlanet will continue to bring you news as it comes our way. Have an opinion on the delays or any other aspect of Mahindra in North America? Make sure you vote on our launch date poll in the upper right corner, or post a comment. As always, please leave your comments, suggestions, questions, or complete flame-jobs on our posts or send them via email. If you have a tip, story idea, or would like to contribute to MahindraPlanet, please contact us: Christian.Winfield@MahindraPlanet.com
MahindraPlanet posted our Open Letter to Mahindra on September 8th. The letter addressed concerns gathered from readers of this blog, and general commentary from around the net. The intent was to offer constructive criticism and solicit a response from Mahindra which we did receive.
Contact
As noted by our comment contributors (thanks joecallimachus and Anonymous) the GV/Mahindra website and contact email address had some issues. This was confirmed by Geylin:
“I understand yours and some of the correspondents’ frustration overLaunch
non-responses and I apologize. There was an issue on our end with emails going
to infor@gv-usa.com we have addressed this issue.”
Delays have plagued the Mahindra pickup launch. With my personal experience in heavy truck and bus OEMs and Tier 1 automotive engineering, I can relate to vehicle launch issues. All of my experience was with domestic product and companies with established history and infrastructure in the North American market. Trust me, it is difficult to launch a new vehicle domestically, I can’t imagine the logistic challenges Mahindra is facing. No specifics were discussed, but it is clear that GV and Mahindra want their trucks to be the best possible product they can put in front of US consumers.
“As for the delays – these are quite normal with an introduction like ours. Much
more important to all parties involved – dealers, Global Vehicles, Mahindra
& Mahindra as well prospective customers – is getting the pickup truck
RIGHT, not meeting an “artificial” on-sale date. The United States is the most
sophisticated and competitive pickup-truck market, so the challenges for getting
things right looms large. Our and M&M’s aim is to do just that.”
MahindraPlanet will continue to bring you news as it comes our way. Have an opinion on the delays or any other aspect of Mahindra in North America? Make sure you vote on our launch date poll in the upper right corner, or post a comment. As always, please leave your comments, suggestions, questions, or complete flame-jobs on our posts or send them via email. If you have a tip, story idea, or would like to contribute to MahindraPlanet, please contact us: Christian.Winfield@MahindraPlanet.com
Friday, September 11, 2009
Mahindra Response and Some New Photos
There has been a lot of response to our previous post containing the open letter to Mahindra. As a brief follow up to that post, we will say this: Mahindra/Global Vehicles USA is watching the web and they are very concerned about public perception of their actions and their vehicles. More later…
In the mean time, we have ‘happened upon’ some new photos of the TR20, TR40, and Scorpio facelift. These are not photos of the US versions, but it still gives us a “preview of coming attractions” so to speak.
We have also learned that the hood scoop which we negatively commented on in the past is actually a functional design element. Apparently the intercooler will be top-mounted (Subaru-style) in the engine compartment. Knowing that it has a purpose is a palate cleanser. We like functional design!
In the mean time, we have ‘happened upon’ some new photos of the TR20, TR40, and Scorpio facelift. These are not photos of the US versions, but it still gives us a “preview of coming attractions” so to speak.
We have also learned that the hood scoop which we negatively commented on in the past is actually a functional design element. Apparently the intercooler will be top-mounted (Subaru-style) in the engine compartment. Knowing that it has a purpose is a palate cleanser. We like functional design!
Tuesday, September 8, 2009
Summer of Discontent: An Open Letter to Mahindra and Global Vehicles
Several individuals have emailed us or left comments in past couple of weeks. First of all, we want to thank you for the great comments and support! However, it seems that many readers are very skeptical about Mahindra vehicles ever actually making it to US shores and we want to address this concern.
MahindraPlanet
First off, we want to be completely transparent: MahindraPlanet.com is a fan and news blog about Mahindra trucks. MahindraPlanet is NOT affiliated with Mahindra U.S.A, Inc., Mahindra & Mahindra Limited, or Global Vehicles U.S.A., Inc. The only vested interest we have is to satisfy our own personal fascination with Mahindra trucks and news about Mahindra in North America. We also hope that readers will support our advertisers and in turn, support the blog financially.
Secondly, we have our own reservations as well. Global Vehicles (GV) is the face of Mahindra on-road vehicles in the US. Global Vehicles is not responsive to requests from MahindraPlanet, or from individuals who have also contacted them directly. A bit baffling, since we would expect that GV and Mahindra would love to promote the brand and get information out there to build anticipation for Mahindra pickups and SUVs.
Mahindra Marketing
Mahindra has been very specific about creating a grassroots level advertising campaign for the TR20, TR40, and subsequent models. MahindraPlanet feels that this blog, other news sites, and great forums (like TractorByNet.com and ExpeditionPortal.com) are a huge asset to the promotion of Mahindra in the US and abroad. We are very curious as to why GV and Mahindra do not seem to utilize this media.
It is our opinion that Mahindra & Mahindra is very serious about entering the US vehicle market. They have clearly stated that they see the US becoming their top export market. Mahindra has also taken the time to submit a vehicle to JD Powers and Associates for feedback, to ensure a successful launch. We believe this dedication to providing a quality product is partially to blame for launch delays.
It is also our opinion that several dealers are very excited about the Mahindra product. MahindraNC and Mississippi Mahindra are clearly active in their early marketing efforts and maintain current websites with news, blogs, and information.
We have no doubt that Mahindra and the US dealer network are onboard. However, our reservations lie with Global Vehicles. News is slow and they are silent. We wonder why they aren’t clearly promoting Mahindra trucks, delays or not. We still don’t even know if TR20 and TR40 are actually the official names for these pickups. It seems that Mahindra is relying on GV (as importer and marketer) to be the voice of Mahindra trucks in the US, but they aren’t speaking.
Open Letter to Mahindra and Global Vehicles
In an internet age when secrets are hard to keep, Mahindra (through GV) seems to hold onto a lot of details that people really want to know (dealers, performance, pricing, etc.). The latest news suggests that the official launch will be in February of 2010. That’s only six months away. It seems to us that this is a great time to build some buzz for the brand. No Facebook, no MySpace, no Twitter… why?
Mahindra and Global Vehicles, if you are listening, understand that you have a lot of fans. Many of whom are already sold on Mahindra trucks. But please also understand that we are hungry for more information. Understand that if you treat us like part of the family, you will build brand loyalty before the first tire touches the road. If you remain a stoic and faceless entity, you will lose customers before you even have a product to sell. This is Web 2.0 Marketing 101, just look at what Mahindra USA does with their website.
MahindraPlanet encourages Mahindra, GV USA, and US dealers to engage this blog. MahindraPlanet also encourages Mahindra to engage other news sites and forums. Ask for our opinions (we do want manual transmissions!). Speak to us on a personal level and listen to us when we ask questions or make suggestions.
Mahindra, we hope you are listening.
MahindraPlanet
First off, we want to be completely transparent: MahindraPlanet.com is a fan and news blog about Mahindra trucks. MahindraPlanet is NOT affiliated with Mahindra U.S.A, Inc., Mahindra & Mahindra Limited, or Global Vehicles U.S.A., Inc. The only vested interest we have is to satisfy our own personal fascination with Mahindra trucks and news about Mahindra in North America. We also hope that readers will support our advertisers and in turn, support the blog financially.
Secondly, we have our own reservations as well. Global Vehicles (GV) is the face of Mahindra on-road vehicles in the US. Global Vehicles is not responsive to requests from MahindraPlanet, or from individuals who have also contacted them directly. A bit baffling, since we would expect that GV and Mahindra would love to promote the brand and get information out there to build anticipation for Mahindra pickups and SUVs.
Mahindra Marketing
Mahindra has been very specific about creating a grassroots level advertising campaign for the TR20, TR40, and subsequent models. MahindraPlanet feels that this blog, other news sites, and great forums (like TractorByNet.com and ExpeditionPortal.com) are a huge asset to the promotion of Mahindra in the US and abroad. We are very curious as to why GV and Mahindra do not seem to utilize this media.
It is our opinion that Mahindra & Mahindra is very serious about entering the US vehicle market. They have clearly stated that they see the US becoming their top export market. Mahindra has also taken the time to submit a vehicle to JD Powers and Associates for feedback, to ensure a successful launch. We believe this dedication to providing a quality product is partially to blame for launch delays.
It is also our opinion that several dealers are very excited about the Mahindra product. MahindraNC and Mississippi Mahindra are clearly active in their early marketing efforts and maintain current websites with news, blogs, and information.
We have no doubt that Mahindra and the US dealer network are onboard. However, our reservations lie with Global Vehicles. News is slow and they are silent. We wonder why they aren’t clearly promoting Mahindra trucks, delays or not. We still don’t even know if TR20 and TR40 are actually the official names for these pickups. It seems that Mahindra is relying on GV (as importer and marketer) to be the voice of Mahindra trucks in the US, but they aren’t speaking.
Open Letter to Mahindra and Global Vehicles
In an internet age when secrets are hard to keep, Mahindra (through GV) seems to hold onto a lot of details that people really want to know (dealers, performance, pricing, etc.). The latest news suggests that the official launch will be in February of 2010. That’s only six months away. It seems to us that this is a great time to build some buzz for the brand. No Facebook, no MySpace, no Twitter… why?
Mahindra and Global Vehicles, if you are listening, understand that you have a lot of fans. Many of whom are already sold on Mahindra trucks. But please also understand that we are hungry for more information. Understand that if you treat us like part of the family, you will build brand loyalty before the first tire touches the road. If you remain a stoic and faceless entity, you will lose customers before you even have a product to sell. This is Web 2.0 Marketing 101, just look at what Mahindra USA does with their website.
MahindraPlanet encourages Mahindra, GV USA, and US dealers to engage this blog. MahindraPlanet also encourages Mahindra to engage other news sites and forums. Ask for our opinions (we do want manual transmissions!). Speak to us on a personal level and listen to us when we ask questions or make suggestions.
Mahindra, we hope you are listening.
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