India's Mahindra & Mahindra Ltd. has said that they are breaking ties with Global Vehicles U.S.A. Inc., which use to distribute Mahindra's Vehicles in US. This development appeared a few days after receiving a key U.S. government approval to sell its small-engine diesel pickups in the United States.
The certification from the EPA last week came after repeated delays in the launch date.
Mahindra posted news of its break with Global on its Web site today.
In a statement Thursday, Global called the claim “inaccurate.”
Global acknowledged that Mahindra has attempted to terminate the agreement, but warned that “such attempted termination is invalid under applicable laws of the United States and the State of Georgia, something which Mahindra continues to disregard.”
Global has been battling Mahindra in court to prod the Indian company to commence U.S. operations.
In a separate statement issued Thursday to Automotive News, Global Vehicles spokesman Max Butler said the company intends to begin selling Mahindra pickups and is “in the process of taking orders and updating all floor plan agreements in anticipation for Mahindra to provide Global Vehicles with the initial production date.”
The statement by Mahindra hangs a question mark over the 300 to 350 U.S. retailers who have signed franchise agreements directly with Global Vehicles, if the Alpharetta, Ga., company no longer is the distributor.
Nor is it clear that Mahindra has the power to terminate the agreement without a court fight.
Source and inputs by Automotive News
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