Mahindra explanes its side - sort of

[Mikeo]

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From http://mediacube.mahindra.com/Latest Press Releases/Statement 23rd September 2010.aspx


IN ORDER TO ADDRESS MISINFORMATION CIRCULATING SURROUNDING ITS RELATIONSHIP WITH GLOBAL VEHICLES WE ARE PROVIDING THE FOLLOWING INFORMATION

Since its founding in 1945, the Mahindra Group has conducted its business in India and internationally, based on trusted business relationships and full respect for the sanctity of contracts.

Hence we view with great disappointment that Mahindra, with its positive, long standing reputation was sued in arbitration, and then in a suit in the federal court in Georgia by Global Vehicles USA, Inc. (GV). Mahindra gave the GV relationship its best efforts. We worked closely with GV to preserve our relationship through multiple extensions to the distribution agreement. Then, as now our ultimate objective was to bring a fine vehicle to the market, to the benefit of all parties.

Despite our best efforts, GV chose to let the agreement expire rather than ask Mahindra for an extension as it had done in the past. Then, for reasons best known to it, chose to initiate litigation. It has also conducted a highly questionable campaign in the press to impugn the Mahindra Group's reputation.

Its actions therefore are harmful to the Mahindra Group’s ability to conduct its business; in the process it also risks the interests of the very dealers that GV claims to protect & support.

The agreement between Mahindra and GV was clear and unambiguous and GV was well aware that the agreement expired automatically on June 11, 2010.

Mahindra’s attention has been drawn to several media reports, quoting the CEO of GV, John Perez, implying that Mahindra was seeking to evade its contractual responsibilities. These statements are misleading. They also lack credibility when viewed against Mahindra Group's six decades of responsible business practice.

Mahindra believes that its position will be upheld in the legal proceedings. Mahindra will endeavor not to allow this dispute and the changed business circumstances to affect its plans to introduce its vehicles to the United States

We will continue to make further information available to the public as the situation requires.

[howam00]

At least it is some word from them and a comment that they are still trying for the December 2010 time frame.

I am sure there is more here than either side is currently letting on. Time will tell but right now I just want the trucks here.

[ToxicSludge]

Decent enough article,yet m&m still didn't address the seemingly deliberate delays in filing the paperwork with the epa,thus causing the delays.I'm sure there is a lot more to this soap opera.Good find on the article.
-george

[blue7.3]

bla bla bla...

[Forest]

So this is how that reads to me

The three year date passed quite a while ago. Each time it came close GV asked for an extension and was granted that extension by M&M. This time it came up and GV, knowing it was really close and the paperwork was being held, did not make another request.

So the deadline came and went and rather than M&M Picking up the phone ans ASKING if GV wanted an extension, they just assumed CV wanted to invoke the escape clause and get out of the contract.

Looks like theses two companies had some poor communication all along, and just may not be the best partners.

[ToxicSludge]

Originally Posted by Forest

So this is how that reads to me

The three year date passed quite a while ago. Each time it came close GV asked for an extension and was granted that extension by M&M. This time it came up and GV, knowing it was really close and the paperwork was being held, did not make another request.

So the deadline came and went and rather than M&M Picking up the phone ans ASKING if GV wanted an extension, they just assumed CV wanted to invoke the escape clause and get out of the contract.

Looks like theses two companies had some poor communication all along, and just may not be the best partners.

By the way things are going,"poor communication all along" is no small part in this saga,and most likely the root cause.