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The latest development at Mahindra & Mahindra (M&M) is the stalling of their contract Global Vehicles Inc., the company's US marketing and distribution partner. The news makes headlines only 3 days after M&M was awarded certification from the US Environmental Protection Agency (EPA). The certification enables M&M to sell pick-up trucks in the US.
Previously, Global Vehicles filed a lawsuit against M&M this June. The complaint filed at an US district court in Atlanta accused M&M of delaying truck launches. The company further complained that m&M had withheld information regarding the launch of its trucks, thereby keeping Global Vehicles Inc. in the dark.
M&M has issued a statement regarding contract termination. The agreement had been drawn up on September 26th, 2006. Global Vehicles has already signed in excess of 350 dealers. The company has also borne expenses of more than $35 million (Rs. 162 crores) to prepare for the impending launch. The company has announced that M&M's attempt to end the contract wouldn't be legal as per US law.
