Mahindra terminates its relationship with Global Vehicles of USA

I hope that all of you know how bad TV soaps are. They are full of drama, the characters never run out of problems, while the vamps never run out of the over-glossy clothes and make-up.

Something almost TV soap-like is what Mahindra has been facing of late. They were having trouble in getting EPA’s approval for selling Pick-Ups stateside. Because of the delay, their partner in the States sued them saying that they (the partner, of course) have lost a considerable amount of money in allocating dealers and as Mahindra is not getting the vehicle, their effort and money goes waste.

But then came the much needed twist in the tale. Mahindra got EPA’s approval. But it was too late now. The relationship between Mahindra and Global Vehicles (their partner in the US) had turned sour. And there was no way they could solve it out.

The relationship between the two came to an end as Mahindra cancelled the contract. There was a statement from Mahindra saying, “Mahindra’s relationship with Global Vehicles Inc has ended, the agreement dated September 26, 2006, between Mahindra and GV having terminated.”

What happens now. Well, we dont know that as of now. The final decision is yet to be made. There could be an out-of-court settlement or a heavy fine imposed on one of them or maybe both.

Mahindra’s has got a nice portfolio for the American market with products like the Pik-Up, followed by the Scorpio, the World S.U.V, a Xylo-based four door pick up and a gas-hybrid electric vehicle too.

Stay tuned for the next episode, er, i mean update.

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