U.S. Dealer Body to Sue Mahindra

Mahindra-pickup-truck

After experiencing a series of setbacks when trying to import a small, inexpensive work truck from India, a group of U.S. dealerships from New Jersey, Florida, California, New Hampshire, and Washington is suing Mahindra & Mahindra and Mahindra USA over allegations of fraud, misrepresentation and conspiracy.

"Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the U.S. market," said Michael Diaz, the managing partner of Miami-based Diaz Reus & Targ. Diaz leads the plaintiff's legal team of Gary Davidson, Brant Hadaway, Carlos Gonzalez and Sumeet Chugani. "However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S. and elsewhere in clear violation of their commitments."

The Indian car company has denied the allegations.

This is likely to be the last possible effort for dealers that made investments in new and expanded dealerships to recover at least part of their money. Whether or not they will be able to prove there was active and willful fraud behind Mahindra's eventual withdrawal from the U.S. marketplace (especially when there could be evidence presented that the small-truck market, let alone the entire U.S. economy, could have weaknesses remains to be seen.

No matter what happens, only one thing is for certain: The continuing saga of a small, inexpensive, diesel-powered little work truck doesn't seem to want to die.

Comments

it's to bad realy, maybe they seen what obummer did to GM shareholders and the got a bad taste from it, oh well the style of there truck was going to kill it anyway, what they needed to do was put a ranger or colorado body on it instead

@sandman - Obama 2012. 4 more years!

Guts. Glory. Obama.

Please tell me English is not your first language. Failure to grasp simple verb, adverb and pronoun usage explains your lack of understanding of basic economics. Bankruptcy is not good for shareholders.

I'm sure the M&M slime-balls did all of the above accusations but it would be very difficult to prove.

It's a bummer the dealers were also misled by John Perez of Global Vehicles USA which I think is now defunct corporation.

Some of the class action lawsuits were thrown out of a European court a while back.

There was a US survey a while back showing American's would rather purchase a car from China than India. That puts things into perspective.

IMHO any dealer who invested in this plan/scam must have had too much money to start with so can probably handle the loss.
I have been working around dealership since 1967, never as an owner, never with my own money invested and I know that I sure would have never invested in this crazy idea.
You would have been smarter just betting off to the side on chance of sucess. At least someone would have made something instead of everyone losing--except Mahindra
I might have bet at 10,000 to 1 odds but probably only $5 bucks


Indian companies do not think like americans. A contract to them is just a 'suggestion'.
If chrysler goes ahead with the 3.0-liter turbo from VM Motori things could get____interesting. I can see several possibilities.
1. Grand Cherokee.
2. 1500 Ram
and since GM owns the other 50% of VM Motori we could see a:
a. Silverado diesel with the same motor.
b. Suburban

Ford would be the one sitting out in the cold. Since the marketing depts. at F & GM seem to have a "me too" mentallity if chrysler and GM start putting diesels in smaller vehicles than the 3/4 ton pickups, Ford will too. Except Ford doesn't have anything. Ecoboost? Hmm, I worry that the ecoboost turbos are going to start imploding. The RPMs and temperatures those are running at just seem too high to me to lend themselves to any kind of a longevity. Only time (and miles) will tell. I discount the hand-buildt ones done by the engineering dept. Lets see how the factory run ones hold up over time, 5-10 years.......I've seen what happens when a turbo fan blade snaps from age and metal fatigue. It's not pretty.

If Jeep came through with the gladiator and this same motor I'd be hard pressed to decided between the 2013 Ram 1500 diesel with the ZF 8-speed transmission and this thing.
http://www.autohotest.com/1013/jeep-gladiator-coming-in-2012/

Predicting what Manufactures with do has to be right up there with alchemy/voodoo. And what manufactures even say they are going to do has to be taken with a large measure of skepticizism.
If chysler comes through Mahindra has no 'in'. right now would be the time for sombody to fill the void left by the ranger and dakota axing. If we could just get rid of that dang 'chicken tax' ! I'm sure many would be interested in an indestructible diesel hylex. My wish would be that they follow through with what they say they are going to do. Also stop with the doggone concept vehicles. Waste of money and it just makes customers disappointed with current offerings. I made the mistake of waiting for the 1/2 dodge diesel cummins was developing a motor for. We all know what happened there. 7 years is a long wait. Too long.


@ Ken,

I'm glad to see that someone else noticed that Perez was also at fault. Someone's actually paying attention.

A lot of the dealers involved in the suit were part of the dealer network that was conned into Perez's last scheme, Crosslander. That deal quickly went south when the Romanian government smelled something fishy and Perez hauled tail. And I think the Brazilian government is looking for him too after he won funding to build Crosslanders in Brazil and couldn't deliver on his promise.

Perez still owes the dealers their money, which he never paid back. Somebody needs to find him now.

Manhindra is still making headlines around here? Stick a fork in it man, it's done.......

stevadore : this is a post for truck drivers NOT english majors, and were oh were did I say it was a good thing? (bad taste)!, and as far as 2012 goes mechanic, I have one word for you Wisconsin! oh no 2 words Wisconsin and landslide

I have one word for you Wisconsin! oh no 2 words Wisconsin and landslide

@Sandman, THIS! Obummer can drive away in a GovtMoCo Sierra truck... Just get him outta here.

@ Ty

I would not expect to see the 3.0 in a GM soon, Fiat is buying up the remaining shares.

http://www.allpar.com/news/index.php/2012/05/al-volante-fiat-buying-remainder-of-vm

and ramping up production:

http://www.allpar.com/news/index.php/2012/05/vm-30000-40000-engines-for-chrysler

Mahindra's greed-based actions has resulted in the company losing all credability in America. At this point I think it would be best if Mahindra abandon any plans of selling vehicles here. I don't know if their actions has impacted tractor sales in America, however I'm hoping the American car dealers win their case.

@DrLou-Agreed. This truck now has a negative image. Anyone that would take the risk to buy one of these would be forewarned that Mahindra would not honor any warranties nor would they provide service or parts. I would have to agree that the dealers would have a slim chance of recovering anything. I remember an article in the Wall Steet Journal in the late 90s where this Perez was working on a dealer franchise deal to import an inexpensive Romanian 4 wheel drive SUV with a Ford V6. That never materialized and I would question Mr. Perez's motives. I would rather buy a Chinese truck from the Red Army than the Mahindra (I would not buy a Chinese copy of an American truck). Better off with a Tacoma, Colorado, Equator, Frontier, or Canyon. I would buy a used truck before I would trust Mahindra or any import from India. Look at the Tata Nano the World's cheapest car it has a reputation of catching on fire. Thanks but no thanks. I would take a Chevy, Ford, or RAM regardless of the Ford fanboys criticism of Chevy. The worst Chevy is better than this unknown truck.

I still hope they are able to get them to the US. I will definitely take one for a test drive and probably buy it. It might help Ford to make tractors again. I kind of like the looks!

@ty, Ford has already engineered and is producing a 4.4 liter diesel, just not for the American market. Happened years ago about the time GM was engineering the baby Dmax. They could ramp up production if needed.

Capitalism is cannibalistic.
We're in the early stages of watching it eat everything around it and eventually eat itself.

MaXx: you misspelled your name , it's spelled MaRx

after that many setbacks its not gonna happen. who wants it anyway? its hideous and every other pickup truck can proobably do its job better. think new chevy colorado.

I need a toilet when I look at this thing,as per going to India I get the squirts.

Américanisme dont whant small économique véhicule, why because like they saynètes, think big but in facture américanisme compagnie donc built small diesel engin véhicule but foetus européenne contre.
That is à shame tout sera that ungry Jeep is notre offert with à diesel engin in américain while it is in Europe.



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