GV Responds to Rejection of Mahindra Pickup Order

[MahindraPlanet]

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From the press release issued yesterday: ALPHARETTA, Ga., Sept. 28 /PRNewswire/ -- Indian company Mahindra and Mahindra has improperly rejected a valid $35 million-plus factory order placed on...

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[ToxicSludge]

Man.....what a soap opera.I really believe that GV is gonna win this whole thing.

[Hughlysses]

It seems every time one side issues a statement, a little more info comes out. This seems to imply that Mahindra wouldn't talk to GV even before the contract clause kicked in.

What a CF.

[jriosa]

I think we will see a 5K rise in price just to pay for all the damned lawyers (no offense to the lawyers out there in this case)

Jim

[Andy]

Whoa. Great article! Come on Mahindra, get your trucks here!

[Bugman]

Originally Posted by ToxicSludge

Man.....what a soap opera.I really believe that GV is gonna win this whole thing.

If GV wins and Mahindra if FORCED to use them ? Just think about how M&M delayed EPA cert ? Are they above sending us junk just to prove a point? Just a thought...

[jmac5058]

Thats a good thought,wonder why M&M is trying to nix their deal with GV they still seem to be eager partners wanting to get to work.M&M is lucky to still have them.

[pee wee]

Well, let's see . . . the bulk of the hard work for GV is behind them. The dealer network is set up, the mechanic training and spare parts infrastructure has been addressed, as I understand it GV's job was to get the sales part ready and Mahidra's job was to get the truck ready to sell. What is ahead for M&M is to make and ship the trucks- they already do that for other markets. what is ahead for GV is to oversee the roll out and implement whatever advertising plan has been set up. The incentive for M&M to cut out GV at this point is obvious, if they can do it for little cost. GV on the other hand, has all their eggs in one basket- they might as well have been called "Mahindra Vehicle", so they are fighting for their very life (in business terms). GV wants a situation where they are working together, so they will maintain a public desire for harmony. M&M wants to strip GV's most important asset- the dealer network- away from them and so is taking a public stance that the GV company is irrelevant.
We here on this forum don't have all the facts, but from what we know it looks like GV has a solid case against M&M. If M&M were to have done the work themselves to set up a dealer network here, what would that have cost? And once set up, what would be the value of the network? And if they didn't have the experience dealing with companies (dealerships) in this country how much would it cost to get assistance? And how much future profit does GV stand to make over the course of the remaining contract period (if the invoking of that escape clause is ruled to be invalid)?
I think Mahindra should stand behind their written and spoken promises or make a complete buyout of GV and every one of the dealers that have signed on. It sounds like they may be partway along those lines, but M&M wants to cherry pick the dealers from the number that has been set up already.

[Hughlysses]

Originally Posted by pee wee

I think Mahindra should stand behind their written and spoken promises or make a complete buyout of GV and every one of the dealers that have signed on. It sounds like they may be partway along those lines, but M&M wants to cherry pick the dealers from the number that has been set up already.

Hasn't it been stated somewhere that Mahindra was trying to buy GV out, but was basically low-balling GV for the value of what they've done? That would explain the way M&M have been acting in the press.

I expect we'll have another counter press release from Mahindra in a day or two saying GV's mother is ugly and dresses them funny.

[Forest]

Originally Posted by Hughlysses

Hasn't it been stated somewhere that Mahindra was trying to buy GV out, but was basically low-balling GV for the value of what they've done? That would explain the way M&M have been acting in the press.

I expect we'll have another counter press release from Mahindra in a day or two saying GV's mother is ugly and dresses them funny.

And two days after that GV will announce they picked out that outfit them-selfs and their mother had nothing to do with it.


Now where is my truck guys