Mahindra gives up US dream, for now
No more small diesel pickups for United States from India’s largest utility vehicle maker, Mahindra. Since 2006, Mahindra has invested $100 million on their US…
In a statement released by Mahindra earlier this week, they stated, “Mahindra recently decided not to proceed further with the project due to changes in the U.S. regulatory and market situation. M&M will continue to monitor the U.S. situation and remain flexible with its approach to this market.”
Earlier in June this year, US dealers sued Mahindra. The lawsuit alleges that Mahindra duped hundreds of U.S. auto dealers and walked away with more than $60 million in cash and trade secrets. Then Mahindra simply reneged on its promises, according to attorney Michael Diaz, the managing partner of Miami-based Diaz Reus & Targ, who leads the plaintiffs’ legal team of Gary Davidson, Brant Hadaway, Carlos Gonzalez and Sumeet Chugani.
Mahindra, the largest truck manufacturer in the world, by volumes, has been constantly delaying launch of their vehicles in US. This has irritated their dealers in US. These very dealers have now filed a lawsuit against Mahindra for these delays, misrepresentation and conspiracy which according to the dealers of the US has caused them loss to the tune of $60 million in both cash and trade secrets.
To read more on the lawsuit filed against Mahindra, click here.
To read an interview from 2007 with Global Vehicles CEO, who was considered as the man who brought Mahindra to US, click here.