Mahindra files a motion to dismiss the US lawsuit

The country's largest utility vehicle maker Mahindra Mahindra (MM), announced on Wednesday that it has filed a motion to dismiss the lawsuit by its US based distributor Global Vehicles over the inordinate delays in the launch of its Prospective sports utility vehicle (SUV) Scorpio and pickups in that market. The motion has been filed in the US district court for Northern Georgia, said company in a statement.

The US based distributor had filed the lawsuit on 14th of June in which it claimed of spending about $35 million in the arrangements for the launch including the initial fee of $8.5 million for distribution appointment. The firm had also claimed that it had signed 360 dealers across the nation to provide a strong dealership base to this pick-up. The claims further include the expenditure of more than $60 million in franchisee fees to acquire the right to sell MM's vehicles.

Mahindra had said that the launch has been delayed as the vehicle needed to be tested extensively on American roads before acquiring the clarification from US regulators.

The company added in its statement that it is diligently working towards satisfying all US homologation requirements and intends to submit its final application as soon as possible. According to company the vehicle will be rolled out in the US market by the end of the year 2010.