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.”
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.