Update 1: Mahindra Rejects $35 Million Truck Order from U.S. Distributor

Global Vehicles USA to Attempt $35 million Order for Mahindra Pickups

Update #1 September-28-2010 02:56 PDT:
Global Vehicles USA says that Mahindra has "improperly rejected" GV USA's "valid" $35 million order request, according to a press release issued this afternoon.

“Our contract with Mahindra requires disputes to be taken to arbitration and both parties are obligated to conduct ‘business as usual’ until there is a ruling,” said John Perez, CEO of GV USA. “We initiated arbitration before Mahindra claims the contract expired and they should not disrespect the process and break the law by continuing to act in bad faith.”

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Indian truck maker Mahindra has rejected an attempt by U.S. distributor Global Vehicles USA to order $35 million of its compact clean-diesel pickup trucks.

According to a press release from Mahindra:

"Mahindra and Mahindra announced that it had received and was rejecting an invalid order for pick-up trucks from former distributor Global Vehicles USA, Inc.

Mahindra views this order as another example of Global Vehicles’ policy of engaging in PR theatrics while pursuing an unnecessary lawsuit. This is Global Vehicles’ continued attempt to manipulate the press to damage Mahindra's reputation. Mahindra also believes that this is an attempt by Global Vehicles to distract Mahindra from pursuing other plans to bring its vehicle to the US market.

As stated in Mahindra's September 24 statement, the contract with Global Vehicles has expired. In light of this fact, Mahindra will be contacting U.S. dealers to make other arrangements for distribution."

GV USA and Mahindra are fighting in arbitration and in U.S. federal court over repeated delays getting Mahindra's pickup certified for sale in the U.S.

Over the past two months, Mahindra has issued two news releases stating that its relationship with GV USA has "expired" while Global Vehicles says Mahindra took unfair advantage of an escape clause in its contract to terminate its relationship with GV USA after the trucks received emissions certification from the U.S. Environmental Protection Agency.

Comments

Who Cares! Just go away.

What a fiasco this is turning out to be...

Fail before even starting. Who is going to trust this company when they do start selling trucks here? The way things are going with all the delays, they probably won't be selling it here for another 3 years.

This is a fail only to those of us who are following the saga. The rest of the public doesn't even know that this company exists let alone can't get their financials in line for a debut. All they will see is a small truck being sold by unknown dealers. Even though I would love a small diesel pick up I wouldn't buy one of these at least for 5-10 years. Prove that you can service a vehicle first.

http://www.youtube.com/watch?v=MK6TXMsvgQg

Somebody needs to sell a small/midsize diesel pickup!

It could be these folks, if they'd get their act together... If not, it will be somebody else.

Just what I thought. The purchase order was a pressure tactic to prove that Mahindra's delays were a contract breaker. Mahindra does not want to deal with GV. We will not see one of these trucks for a long time. Courts are notoriously slow. Mahindra has deep pockets and will drag the court procedings out as long as possible.

Ford, GM, Toyota, Nissan all have small/midsize diesel trucks internationally, for the life of me I don't understand why they don't bring them on a carshow tour of the US, allow test drives to the press and public, have demonstrations on work capabilities and get a public opinion. On this site alone I've seen hundreds if not thousands of posts asking for small trucks. They do exist and the people want them, so why not oblige?

I was looking forward to at least test driving one of these. But, I guess this is just one more nail in the coffin.

Who do we think would actually be buying these trucks? Its not big enough for everyday working. Its not nice enough to use it as a family vehicle and not cheap enough to just have sitting around. I think this is a mute point. it seems the people that are excited about it are people that are not truck people. It looks like the truck is from the late seventies. Go drive a new F150 and then take a look at a Mahindra. I think we all know that ford is not going to let their share of the small truck market go away. I would imagine they are going to return with a Ranger that is much better than the current one.

@ Deacon
Chicken tax - you can't import a truck without a 25% duty. The only exceptions are countries with free trade agreements or exemptions. Even domestics have to pay the duty.
Ford gets around it by importing the Transit Connect as a passenger van (exempt) and converting it to a utility vehicle.
Dodge makes their HD's in Mexico under NAFTA.
I know Canada, and Mexico are exempt. I think South Africa is as well.
The double edged sword of protectionism is partially to blame for the auto industry getting into trouble.
Why compete when Uncle Sam will protect your lazy corporate asses?
Protectionism also encouraged the UAW to get greedy.
We will not see cheeper full size or compact trucks in the current economic climate.
Do you think the current owners of GMC(UAW and USA Gov) and Chrysler (UAW,Fiat,USA Gov) would want the chicken tax repealed?
I doubt that even Ford would survive the current downturn with an open market.

I agree...go away. i'd rather drive a Yugo than a mahindra.

@ Don. mute point? Cute or is it coot?

gv can't win against mahindra. mahindra is gaint auto maker, even capable of buying companies like GM.

Yugo II.
Now all they need is to contact Malcolm Bricklin for importation distribution.Once that gets up to (relative) speed,he can pursue other 3rd world vehicle offerings...ahhh,happy days are here again!
NOT.

(Global Vehicles,or GV "Great Value" was the model trim for Yugo...coincidence heh? Doesnt Wal Mart use "Great Value" too???)

I'd like to at least see the crash test ratings on this crackerbox....

Deacon: "Ford, GM, Toyota, Nissan all have small/midsize diesel trucks internationally, for the life of me I don't understand why they don't bring them on a carshow tour of the US, allow test drives to the press and public, have demonstrations on work capabilities and get a public opinion. On this site alone I've seen hundreds if not thousands of posts asking for small trucks. They do exist and the people want them, so why not oblige?"

Because if every truck buyer bought an F-150 who didn't need one bought a little diesel truck instead, the F-150 sales would tank! And the F-150 is profitable as-is...

Somebody's got to break the status quo and fix this market by introducing a proper small truck again, with great mileage and the right kind of utility for a weekend DIY-er. I'm betting on Jeep or Mahindra, personally -- but smashing the status quo always a longshot.

(Why does it have to be a diesel? Because that's one of just a few improvements that could make a new truck competitive with my 1998 Ranger with 180k miles!)

(Full-time AWD would be another change that would make a compact truck competitive with my old Ranger -- and would be a nice answer to RWD making sense when the truck is loaded or towing, and FWD making sense when it's empty.)

The Crosslander Saga, Part 2.

It certainly seems that Mahindra will not sell the trucks here-at least not through GV. I think the plan is to sell them through the Mahindra tractor network or even through Navistar.

I was hoping that John Perez had learned his lesson after getting burned by ARO/the Romanian Government when he was setting up Crosslander. Now here we go again. But what's even, worse, is he's going to have to compensate the 300+ dealers who stayed with him after Crosslander fell through. I wonder how he's going to accomplish that?

One can only hope he doesn't try to bring another brand to market soon.

As for Mahindra, good luck.

If you have ever had to deal with Mahindra equipment you would do your best to stay away from this imported crap. Sad to see GV got burned but that pretty much happens to everybody that does business with them.

I guess since it's foreign it's ok for this toilet to be 15 years behind everyone else in terms of design and technology (minus the engine).

I'm kinda confused about the whole diesel thing (nothing to do with Mahindra) if you want to buy a Ford or GM truck with a diesel they easily ad on 5-7K to the purchase price right? For fun I just priced out a VW Golf GTI and a VW Golf TDI and guess what! The TDI (diesel) is cheaper! I'm originally from Holland and when I left there 12 years ago we already had ten's of thousand's compact diesel pick-up trucks driving around, Toyota, Nissan, Mitsubishi, VW etc. One reason is that diesel is cheaper to buy then unleaded gas and the diesel's are of course more fuel efficient. Most of the "elite" people who drive Mercedes and BMW all drive diesel's. I wouldn't mind a 1/2 ton diesel truck either!

I feel like every couple of days this saga takes yet another negative turn. Although I still haven't lost hopes, especially because Mahindra has repeatedly said that they're committed to bringing their pickups to the US. And they're right to be committed - forget the money they've sunk in. Their trucks can succeed - compact, rugged, fuel efficient, clean diesel-powered.

It is a sad state of affairs. At face value, I find it hard to trust anything Mahindra has to say about it.

Didn't Global Vehicles USA stand at the ready to distribute these trucks? Shouldn't Mahindra be ready to stand with Global Vehicles?

I see a number of comments about small pickups available here in the US. Unfortunately, with the shift of the Ford Ranger to a more mid-size rating equivalent to the F-150 of 1959, we honestly need a new line-up of small pickups.

Some people simply don't want a giant, $30,000+ full-sized pickup while those wanting smaller are now stuck with something almost as big as the full-sized monsters at a price averaging only about $5,000 less. What happened to the Chevy Luv (built by Isuzu), the Ram D50 (built by Mitsubishi), the Mazda D5000? Heck, even the Ranger is almost twice as big and three times the price of its first model!

Some here have also suggested that Mahindra is also a complete unknown that won't be capable of properly supporting the products for years. What these few may not realize is that Mahindra is now one of the biggest sellers of farm tractors in this country and that those tractors are garnering significant reliability numbers--higher even than some US and Asian brands. Mahindra should be capable of using their established farm dealerships to initiate sales and service and grow their brand as they get used in real-world jobs. Mahindra's only truck class for the US--both 2-door and 4-door models--is rated for one ton of cargo capacity despite its small size; a load capacity that blows away all other trucks its size and competes with some of the biggest American models. Show me any compact truck sold in the US in the past 30 years that comes with that kind of capacity in the base model. Show me any US-made pick up truck base model that can carry that load plus driver and passengers.

No, the problem here isn't Mahindra, it's the company that is trying to monopolize Mahindra's US market. Arbitration needs to be abandoned as an abusive and unbalanced method of dispute resolution. Take it to the courts and let the customers decide.

Leave it to John Perez to screw this deal up just like he did on the Crosslander!

FORD,GM,TOYOTA AND NISSAN ALL have midsize diesel powered trucks the sell in erope and the rest of the world .people need to undestand this is a goverment conspiracy to keep efficient cars or trucks out of us borders,the reason why is a close doors secret,ask yourself why erope and the rest of the world has them and not the us..some may ask they dont meet us safety and or emission this is pure crap i'personally driven these trucks in erope and love theem overall open your eyes amigos.......



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