Mahindra backs out from U.S. Deal again
Mahindra Group is going through a tough time as a suit is filed against the company by Bannon Automotive for braking a contract according to which Bannon got the exclusive rights to both sell and manufacture the vehicle in United States of America. The suit filed by the company is against both Bangalore based Reva Electric car company and its parent organisation Mahindra.
Recently Mahindra Mahindra, the Indian Automobile manufacturer was in news for backing out from American company, Global Vehicles USA. The company had an accord with Mahindra Group for Compact pickup fans, which was backed out notoriously by Indian major. And now there is a second name on the list of US based company being wronged by Mahindra Group.
According to the claims made by US based company Bannon Automotive, both Reva Electric Car Company and Mahindra Group have broken a deal according to which only they had the right to manufacture and sell the car in states. Moreover a part of the claim also says that Bannon Automotive is forcing Bangalore based Reva Electric Car Company to assign them a licence to manufacture and sell Reva NXR. It is a beautiful model built by Reva Electric Car Company which is far effective then existing model in the same category. The car is built to travel 120 miles without stopping in one single charge and is priced between $17,000 and $25,000. Electric car segment is gaining popularity in market due to increasing environment concern and here electric car makes a smoke free option.
In the month of October 2010 an MoU was signed between Bannon Automotive and Mahindra according to which Reva NXR was declared not to be ready for production in America and at the same time, Bannon came to know that Mahindra is planning to bring their Electric car in American Auto Market.
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