Global Vehicles to place $35 mn order with Mahindra & Mahindra despite dispute

The Georgia-based auto dealer, Global Vehicles USA Inc, the Alpharetta, has stated that it will place an order of $35 million-plus for pick-ups from Mahindra & Mahindra Ltd. This comes as a surprise because Global Vehicles and Mahindra and Mahindra, the Indian auto major are in a little dispute with each other. However, the order about which the Global Vehicles has stated will contain the inexplicit number of TR20 and TR40 pickups.

Published On Sep 25, 2010 12:56 IST

Published OnSep 25, 2010 12:56 IST

Last Updated OnSep 25, 2010 12:56 IST

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The Georgia-based auto dealer, Global Vehicles USA Inc, the Alpharetta, has stated that it will place an order of $35 million-plus for pick-ups from Mahindra & Mahindra Ltd. This comes as a surprise because Global Vehicles and Mahindra and Mahindra, the Indian auto major are in a little dispute with each other. However, the order about which the Global Vehicles has stated will contain the inexplicit number of TR20 and TR40 pickups. Global Vehicles even stated that around 350 dealers in 49 states and the company itself has made an investment of around $100 million for the vehicles’ sales.

In June, Global Vehicles knocked a federal court of Atlanta for prohibiting India’s biggest sport-utility vehicle maker, Mahindra and Mahindra from making any sales in the US with any other dealer. The company made a claim that Mahindra and Mahindra, the Mumbai-based automaker of India, is involved in protracted contract negotiations for the services which are linked to tests of regulatory emission.

On the other hand, Mahindra and Mahindra wants the suit to be dismissed. The company had earlier stated that its tie-up with Global Vehicle has come to an end as it has expired. Pawan Goenka, president of Mahindra’s automotive and farm equipment unit and Roma Balwani, Mahindra spokeswoman did not respond to the further calls that were made to them today. M& M also gave the statement that it provided “relationship its best efforts,” to Global Vehicles. It also said that it still plans to sell the vehicles in US market.

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