Mahindra Distributor Drops US Lawsuit, Defends 30 MPG Claim
Automotive News [sub] reports that Global Vehicles, a firm with a contract to distribute Mahindra pickup trucks in the US, has dropped its lawsuit in US court in an apparent attempt to rescue its distribution deal. The contract between Mahindra and GV called for British arbitration of disputes, and apparently the British arbitration panel required that all claims be handled through it rather than in US courts. The dropped suit would have required Mahindra to press forward with its US launch regardless of pending arbitration. Mahindra, meanwhile, has said it is looking outside of its deal with GV for a US distributor, so it’s not clear if GV’s olive branch will even make a difference.
Meanwhile, Mahindra has not yet commented on the recent 19/21 MPG EPA rating earned by its truck, which has long been hyped as being capable of achieving 30 MPG on diesel fuel. GV’s John Perez says the matter is for the manufacturer to address, but, he tells AN [sub]:
The discrepancy may be a matter of which truck was tested. Mahindra plans to introduce two versions of the truck: a two-door, two-wheel-drive version, and a four-door, four-wheel-drive version. The four-door version with an automatic transmission gets 40 percent worse fuel economy than the two-door, Perez said. Mahindra provided the four-door version to the EPA for the initial fuel economy rating.
In a comment today to Automotive News, Perez maintained that the two-door truck will live up to its promised fuel economy in the 30-mpg range.