Any dealers here impacted by the Mahindra and Global Vehicles lawsuit? - Page 2

XDCX · 08-31-2011, 09:51 AM

Quote:

Originally Posted by flstsphil

Global Vehicles, the United States distributor for Mahindra vehicles shut down their offices. The arbitration is going forward beginning August 30 in London, England. Global Vehicles will not be distributing vehicles in this country. A victory in the arbitration would transfer liability for the dealer contracts directly to Mahindra.

Thanks for the update.

I wonder if many of the dealers who originally had a deal with Global Vehicles still want to go forward with a Mahindra franchise? I bet a lot of them are worn out and would rather just receive a cash settlement and move on.

57years · 09-12-2011, 08:50 AM

Does anybody have access to "Ward's"? There is a Mahindra Article posted, and I am not a subscriber, so I can't see it. Here's the link: http://www.google.com/url?sa=X&q=htt...B_aF1frNPZhUmA .

Please copy and paste for me. Thanks,

nimnicht1 · 09-12-2011, 11:20 AM

By Byron Pope
WardsAuto.com, Sep 12, 2011 10:31 AM

Waiting to buy a Mahindra & Mahindra pickup in the U.S.? Don’t hold your breath.

Against a backdrop of discord between Mahindra and importer Global Vehicles U.S.A., the U.S. Environmental Protection Agency has all but slammed the door on the Indian auto maker’s small diesel-powered truck, WardsAuto learns.

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EPA spokeswoman Catherine Milbourn says the Mahindra pickups received federal emissions certification for model-year ’11 vehhicles, but that approval expires at year’s end.

And the EPA “has not received, nor has Mahindra applied for, a 2012 model-year certificate,” Milbourn adds.

Meanwhile, the National Highway Traffic Safety Admin. says “Mahindra & Mahindra has identified itself to NHTSA as a vehicle manufacturer and submitted the necessary information to sell its vehicles in the U.S.,” but adds, “the agency is not aware of the company’s current timing or plans for exporting vehicles for sale in the U.S.”

Repeated attempts by WardsAuto to contact Mahindra and Global Vehicles went unanswered, and a source once closely tied to Global Vehicles says the company has ceased operations.

Alpharetta, GA-based Global Vehicles CEO John Perez last year told WardsAuto his company was in a legal dispute over import rights to the U.S.-spec Mahindra TR20 and TR40 small pickups, which reportedly have a towing capacity of 5,000 lbs. (2,268 kg) and a payload of 2,765 lbs. (1,254 kg).

Powered by 2.2L 4-cyl. diesel engines, the pickups were expected to arrive in the U.S. in 2008, Perez said. Mahindra then pushed the date to September 2010, before saying the contract with Global Vehicles had expired, forcing Perez to seek a resolution through legal action.

Mahindra plans to export small diesel pickup to U.S. unfulfilled.

The last update from Global Vehicles states the case had landed in a London court, considered a neutral site for settling the dispute.

In its complaint, Global Vehicles asks the court to prohibit Mahindra from distributing vehicles through any other company or contracting with U.S. dealers directly.

Shortly after the lawsuit was filed, Mahindra issued a release saying it viewed Global Vehicle’s position as “PR theatrics,” while calling the lawsuit unnecessary.

“This is Global Vehicles’ continued attempt to manipulate the press to damage Mahindra’s reputation,” the auto maker said.

Perez responded by alleging Mahindra never planned to honor the contract.

“They’ve done it in South Africa, Australia and Italy,” he said. “They signed up distributors, let them set up (the distribution channel) and then took over. Big auto companies have ways to squeeze small distributors like us out.”

In a statement, Mahindra did not directly address Global Vehicles’ allegations, but did say it was seeking another avenue to bring its pickups to the U.S.

Related Stories

Dispute With Distributor Continues to Keep Mahindra Out of U.S.

Global Vehicles Lawsuit Pre-Emptive Strike Against Any End Run by Mahindra

Since then there has been silence from both sides.

But some of the 347 U.S. dealers, including a few who paid up to $200,000 for distribution rights, are holding out hope that Global Vehicles’ $35 million order for the trucks eventually will be filled.

“All we know is that Mahindra and Global Vehicles are in an arbitration hearing in London to determine whether Global will be the distributor of the trucks,” says John Pearson, president of Zionsville, IN-based Pearson Ford.

“We are assuming that there will be no determination of the distribution of the trucks until that is resolved,” he adds.

57years · 09-12-2011, 11:29 AM

Thank you!!

As I understand it, the Arbitrator has the case. All documents and witnesses have been submitted.

XDCX · 09-12-2011, 03:21 PM

Quote:

Originally Posted by 57years

As I understand it, the Arbitrator has the case. All documents and witnesses have been submitted.

But it sounds like the whole deal will have to start at square one if Mahindra wants to import vehicles into the U.S. I wonder how long it takes to obtain EPA Certification and whether the fact Mahindra's current certification is about to expire is a big issue?

On a different note, I thought the comment that Mahindra has a reputation of poor relations with their distributors was interesting.

57years · 09-13-2011, 07:19 AM

It is no secret, Mahindra tried to buy out Global in 2009. According to the news reports, Perez refused the sale when Mahindra told him to "omit the dealer franchises" from the sale, in other word "screw the franchisee."

I caution relying on the news reports, as every bit of overseas information of Mahindra's activities in South Africa, Brazil, and Australia has been released to the press thru Global. I have not reviewed a "independent" verification of their relationships overseas.

I did business for many years with the "devil in a blue suit" until they threw me out like yesterday's bathwater. How much worse could it be dealing with Mahindra? It's the product and pricing that will make them a success or failure; Not the dealer network!

From what I read in 2009, Mahindra's Diesel EPA approval was applied for by Mahindra based on 2011 (and later) standards. That's why the Fuel ratings were low. That sounds to me like, a "renewal" of the certification could be boilerplate.

Regardless, the truck the engine was approved for, is a styling Mahindra seems to have moved away from. At this point, I don't know what vehicle the dealer would receive.

XDCX · 09-13-2011, 12:13 PM

Quote:

Originally Posted by 57years

Regardless, the truck the engine was approved for, is a styling Mahindra seems to have moved away from. At this point, I don't know what vehicle the dealer would receive.

Good point. Even if the arbitrator's decision is favorable for the dealers and re-certifying the Mahindra pickup with the EPA is an easy process, there's no guarantee that Mahindra will be able to bring new product to the U.S. quickly.

XDCX · 09-13-2011, 05:10 PM

I've been checking to see where DealershipForum's traffic has been coming from and I noticed there was a Mahindra Truck Forum that had a link to this thread. Here's a link to their forum - click here

Here's a link to their thread that was linked to this thread - click here

I would have never guessed there was a forum that was dedicated to the Mahindra Trucks - you've got to love the Internet.

57years · 09-14-2011, 06:35 AM

I've been watching that forum for a year. Seems like more of a "retail buyers" comment area, and a lot of discussion of diesel engines and trucks. There is a lot of users disgruntled with Mahindra, and supportive of Global. I have reviewed a few comments from users from India who have become members. I sometimes think they are practicing "American English."

steve_biegler · 09-21-2011, 08:13 AM

http://wardsdealer.com/latest/mahind...out_us_110912/
Wards update

57years · 09-22-2011, 06:17 AM

Global released a statement today, indicating the Arbitration decision will not be announced before "October or November."

XDCX · 09-23-2011, 09:01 AM

Thanks for the updates.

This thread continues to get a lot of hits from non-members. I'm guessing there are a lot of people out there who are wondering what the status is with Mahindra and Global and they're starved for information.

nimnicht1 · 12-05-2011, 08:01 AM

Has arbitration been settled? Have not heard anything lately.

57years · 12-05-2011, 10:28 AM

Decision has not been announced to this writer, (and I do listen for the words.) Last update was the decision "may not be available until the first of the year." I hope I am making a valid assumption that the year referred to is 2012! I don't mean to be "cute," but many like myself feel very frustrated with this arbitration process. The whole thing just hits to close to home! Hell, 5 years ago, arbitration was a process for settleing of disputes with a disgruntled (buyers remorse) new vehicle customer. Now, I cringe when I think of what I and my fellow GM and DCX dealers have been through under the guise of "arbitration."

flstsphil · 12-05-2011, 01:37 PM

If Global Vehicles wins the arbitration against Mahindra we still may not get franchises. Mahindra can bring in vehicles through Sassong, the Korean company they bought and may never bring the Mahindra brand to the United States.
The breach of contract class action case in United States District Court in St. Louis, Jerry Ackerman vs. Mahindra and Global Vehicles is still moving forward.

09-13-2011, 05:10 PM	#23
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	A forum dedicated to the Mahindra Trucks I've been checking to see where DealershipForum's traffic has been coming from and I noticed there was a Mahindra Truck Forum that had a link to this thread. Here's a link to their forum - click here Here's a link to their thread that was linked to this thread - click here I would have never guessed there was a forum that was dedicated to the Mahindra Trucks - you've got to love the Internet.

12-05-2011, 08:01 AM	#28
nimnicht1 New Member Join Date: Sep 2011 Posts: 2	Any Updates Has arbitration been settled? Have not heard anything lately.

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09-12-2011, 08:50 AM	#17
57years Senior Member Join Date: Sep 2009 Posts: 554	Does anybody have access to "Ward's"? There is a Mahindra Article posted, and I am not a subscriber, so I can't see it. Here's the link: http://www.google.com/url?sa=X&q=htt...B_aF1frNPZhUmA . Please copy and paste for me. Thanks,

09-12-2011, 11:20 AM	#18
nimnicht1 New Member Join Date: Sep 2011 Posts: 2	By Byron Pope WardsAuto.com, Sep 12, 2011 10:31 AM Waiting to buy a Mahindra & Mahindra pickup in the U.S.? Don’t hold your breath. Against a backdrop of discord between Mahindra and importer Global Vehicles U.S.A., the U.S. Environmental Protection Agency has all but slammed the door on the Indian auto maker’s small diesel-powered truck, WardsAuto learns. ADVERTISEMENT EPA spokeswoman Catherine Milbourn says the Mahindra pickups received federal emissions certification for model-year ’11 vehhicles, but that approval expires at year’s end. And the EPA “has not received, nor has Mahindra applied for, a 2012 model-year certificate,” Milbourn adds. Meanwhile, the National Highway Traffic Safety Admin. says “Mahindra & Mahindra has identified itself to NHTSA as a vehicle manufacturer and submitted the necessary information to sell its vehicles in the U.S.,” but adds, “the agency is not aware of the company’s current timing or plans for exporting vehicles for sale in the U.S.” Repeated attempts by WardsAuto to contact Mahindra and Global Vehicles went unanswered, and a source once closely tied to Global Vehicles says the company has ceased operations. Alpharetta, GA-based Global Vehicles CEO John Perez last year told WardsAuto his company was in a legal dispute over import rights to the U.S.-spec Mahindra TR20 and TR40 small pickups, which reportedly have a towing capacity of 5,000 lbs. (2,268 kg) and a payload of 2,765 lbs. (1,254 kg). Powered by 2.2L 4-cyl. diesel engines, the pickups were expected to arrive in the U.S. in 2008, Perez said. Mahindra then pushed the date to September 2010, before saying the contract with Global Vehicles had expired, forcing Perez to seek a resolution through legal action. Mahindra plans to export small diesel pickup to U.S. unfulfilled. The last update from Global Vehicles states the case had landed in a London court, considered a neutral site for settling the dispute. In its complaint, Global Vehicles asks the court to prohibit Mahindra from distributing vehicles through any other company or contracting with U.S. dealers directly. Shortly after the lawsuit was filed, Mahindra issued a release saying it viewed Global Vehicle’s position as “PR theatrics,” while calling the lawsuit unnecessary. “This is Global Vehicles’ continued attempt to manipulate the press to damage Mahindra’s reputation,” the auto maker said. Perez responded by alleging Mahindra never planned to honor the contract. “They’ve done it in South Africa, Australia and Italy,” he said. “They signed up distributors, let them set up (the distribution channel) and then took over. Big auto companies have ways to squeeze small distributors like us out.” In a statement, Mahindra did not directly address Global Vehicles’ allegations, but did say it was seeking another avenue to bring its pickups to the U.S. Related Stories Dispute With Distributor Continues to Keep Mahindra Out of U.S. Global Vehicles Lawsuit Pre-Emptive Strike Against Any End Run by Mahindra Since then there has been silence from both sides. But some of the 347 U.S. dealers, including a few who paid up to $200,000 for distribution rights, are holding out hope that Global Vehicles’ $35 million order for the trucks eventually will be filled. “All we know is that Mahindra and Global Vehicles are in an arbitration hearing in London to determine whether Global will be the distributor of the trucks,” says John Pearson, president of Zionsville, IN-based Pearson Ford. “We are assuming that there will be no determination of the distribution of the trucks until that is resolved,” he adds.

09-12-2011, 11:29 AM	#19
57years Senior Member Join Date: Sep 2009 Posts: 554	Thank you!! As I understand it, the Arbitrator has the case. All documents and witnesses have been submitted.

09-13-2011, 07:19 AM	#21
57years Senior Member Join Date: Sep 2009 Posts: 554	It is no secret, Mahindra tried to buy out Global in 2009. According to the news reports, Perez refused the sale when Mahindra told him to "omit the dealer franchises" from the sale, in other word "screw the franchisee." I caution relying on the news reports, as every bit of overseas information of Mahindra's activities in South Africa, Brazil, and Australia has been released to the press thru Global. I have not reviewed a "independent" verification of their relationships overseas. I did business for many years with the "devil in a blue suit" until they threw me out like yesterday's bathwater. How much worse could it be dealing with Mahindra? It's the product and pricing that will make them a success or failure; Not the dealer network! From what I read in 2009, Mahindra's Diesel EPA approval was applied for by Mahindra based on 2011 (and later) standards. That's why the Fuel ratings were low. That sounds to me like, a "renewal" of the certification could be boilerplate. Regardless, the truck the engine was approved for, is a styling Mahindra seems to have moved away from. At this point, I don't know what vehicle the dealer would receive.

09-14-2011, 06:35 AM	#24
57years Senior Member Join Date: Sep 2009 Posts: 554	I've been watching that forum for a year. Seems like more of a "retail buyers" comment area, and a lot of discussion of diesel engines and trucks. There is a lot of users disgruntled with Mahindra, and supportive of Global. I have reviewed a few comments from users from India who have become members. I sometimes think they are practicing "American English."

09-21-2011, 08:13 AM	#25
steve_biegler Senior Member Join Date: May 2010 Posts: 1,497	http://wardsdealer.com/latest/mahind...out_us_110912/ Wards update

09-22-2011, 06:17 AM	#26
57years Senior Member Join Date: Sep 2009 Posts: 554	Global released a statement today, indicating the Arbitration decision will not be announced before "October or November."

09-23-2011, 09:01 AM	#27
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	Thanks for the updates. This thread continues to get a lot of hits from non-members. I'm guessing there are a lot of people out there who are wondering what the status is with Mahindra and Global and they're starved for information.

12-05-2011, 10:28 AM	#29
57years Senior Member Join Date: Sep 2009 Posts: 554	Decision has not been announced to this writer, (and I do listen for the words.) Last update was the decision "may not be available until the first of the year." I hope I am making a valid assumption that the year referred to is 2012! I don't mean to be "cute," but many like myself feel very frustrated with this arbitration process. The whole thing just hits to close to home! Hell, 5 years ago, arbitration was a process for settleing of disputes with a disgruntled (buyers remorse) new vehicle customer. Now, I cringe when I think of what I and my fellow GM and DCX dealers have been through under the guise of "arbitration."

12-05-2011, 01:37 PM	#30
flstsphil Member Join Date: Aug 2009 Posts: 62	If Global Vehicles wins the arbitration against Mahindra we still may not get franchises. Mahindra can bring in vehicles through Sassong, the Korean company they bought and may never bring the Mahindra brand to the United States. The breach of contract class action case in United States District Court in St. Louis, Jerry Ackerman vs. Mahindra and Global Vehicles is still moving forward.