Oberkanone
Top Post Dawg
Mahindra Responsible for Delays in Delivering Trucks to U.S. Dealers
http://www.prnewswire.com/news-rele...elivering-trucks-to-us-dealers-105291238.html
http://www.prnewswire.com/news-rele...elivering-trucks-to-us-dealers-105291238.html
[Global Vehicles USA, Inc., the exclusive U.S. distributor of Mahindra pickup trucks, called on India-based Mahindra & Mahindra to begin building vehicles for sale in the United States and commit to a launch date, which would bring it back into compliance with the arbitration clause of the distribution agreement between the two companies.
"Nearly 350 dealers have been ready to sell Mahindra trucks for more than three years," said John Perez, chief executive officer of Global Vehicles. "If Mahindra executives were being truthful when they said that the trucks would be on sale by the end of the year, they should honor that commitment so dealers can start earning back the tens of millions of dollars they have invested in the brand.
"Binding arbitration will decide if Mahindra lied to Global Vehicles and our dealers about the status of the trucks and whether they broke the law when they attempted to arbitrarily terminate our distribution contract," Perez added. "In the meantime, Mahindra is legally – and morally – obligated to conduct business as usual."
Global Vehicles believes that Mahindra improperly took advantage of an escape clause that was designed to allow both parties to walk away from the project if Mahindra was unable to achieve U.S. safety and emissions standards by June 11, 2010. Mahindra executives communicated publicly on multiple occasions in 2009 and 2010 that the U.S. launch was on track, and the company announced in August 2010 that it had received certification from the EPA to sell the trucks.
/QUOTE]