Breaking: Mahindra Dumps US Distributor

Edward Niedermeyer
by Edward Niedermeyer

Just days after Mahindra’s diesel-powered compact pickups were approved by the EPA for sale in the US, the Indian automaker apparently canceled its distributor agreement with Global Vehicles according to the message above that was posted to Mahindra’s Media site. Global Vehicles has had a deal to distribute Mahindra pickup and SUV models in the US since 2006, and has signed up 350 dealers to sell the Indian imports. Recently cracks in the relationship surfaced when GV sued Mahindra alleging that the manufacturer was delaying homologation for the US market. GV claims to have spent $35m preparing for Mahindra’s US launch, and dealers were said to have paid $200k apiece to obtain franchises. Meanwhile, Automotive News [sub] notes

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.

Edward Niedermeyer
Edward Niedermeyer

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4 of 21 comments
  • Ryan Ryan on Aug 26, 2010

    If they would have displayed a strong track record over 2-3 years, I would have purchased the TR40. Now what? I need a compact/mid sized pickup that gets 28+ mpg!

  • Eggsalad Eggsalad on Aug 27, 2010

    Have I said "vaporware" every time there's been a Mahindra post? Why yes, yes I have.

  • OldandSlow OldandSlow on Aug 27, 2010

    It may be a low rent operation - but they are testing their vehicles in the USA and this one appears to have its steering on the left side of the dashboard.

  • Deezul Deezul on Aug 27, 2010

    We know very little about what is going on here. Did Mahindra make a mistake by hiring a distributor it cannot see eye to eye with? Or has GV done nothing wrong and Mahindra is to blame? I guess it is whichever one you want to believe. For me, I have no clue what is real, but I do know that Perez has been down this nearly exact road once before with his Romanian or Yugoslavian import deal that went into courts. Deja voo all over again. Everything I have read about Mahindra is that they are tough but professional, and I expect them to get the product right and take care of their customers... at the end of the day that is what will make them successful once they get past this mess. And yes, I need a high MPG diesel pickup too!!!