Mahindra Delay Excuses Don't Set Well With Importer

[MahindraPlanet]

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Mahindra importer, Global Vehicles USA (GV), has quickly responded to Mahindra’s statements that the US launch of their India-built line of compact diesel pickup trucks has been delayed indefinitely...

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[Forest]

Doesn't sound like "Arbitration" is doing anything in either direction

[robbieo11]

wtf *******s

[ToxicSludge]

"If dealers start to doubt Mahindra's integrity, they don't stand a chance of earning the trust of American consumers." – John Perez


That is an understatement to say the least.m&m's failure to honor any part of the contract with GV is,again,another example of the massive arrogance thing that m&m keeps showing the whole world.Look at all the different partnerships that m&m has entered in just this year alone.I can't help but wonder if those other companies are thinking twice now about their relationship with m&m.As far as m&m "not recognizing" American law,if they lose,(which I believe they will) and try to weasel out of the sizable judgment that they would be slapped with,any and all assets here will be seized,that would mean at the very least,their tractors and stuff.Either way,by not recognizing American law for doing business,what laws in what countries would they recognize? Personally,I think they suck big time and would never buy ANY product that I know to be connected with them.

[pee wee]

So, let's say you're Mahindra the man. You're not unintelligent, and you have expensive lawyers on the payroll. While they do operate out of India they also are pretty familiar with our court system. I'd imagine you've got a pretty accurate picture of your chances if it goes to trial, and an idea of what your options will be. Faced with having to sell trucks here for close to cost versus what you can get in the home market (at least until the parts shortages are resolved) thanks to that import tax the U.S. imposes on trucks, and with the idea that you had underestimated the size of the initial market, how about this strategy: you drag your feet and say nothing. Meanwhile, you scramble to get things rolling with an assembly plant in the U.S. Isn't a 25% tax big enough to form decisions around- especially if it looks like you're talking about a relatively large number of vehicles?

[ToxicSludge]

I seem to remember reading somewhere that the 25% "chicken tax" was to be waived in lieu of them (m&m) building a factory here.Wish the hell I could remember where I read that at.

[pee wee]

Originally Posted by ToxicSludge

I seem to remember reading somewhere that the 25% "chicken tax" was to be waived in lieu of them (m&m) building a factory here.Wish the hell I could remember where I read that at.

That would be interesting and significant, but I couldn't find it readily. Two things I did find:
this from a bunch of sources mainly pre 2009

Initially, Mahindra had said it would assemble the trucks at a plant in Ohio from parts shipped in from India . . .

and this from Mahindratruckblog.com

Once we decide to assemble in the U.S., we would look at Navistar’s facilities to see if there’s something available which is right for us and if that works out,” said Pawan Goenka, president of Mahindra’s automotive division. “We will certainly give priority to using Navistar’s facilities.”

[ToxicSludge]

Here's something on the tax from way back....

Global Vehicles lobbying to end Chicken Tax for Mahindra pickups — Autoblog Green


http://www.trucktrend.com/features/n...tax/index.html

[pee wee]

I'd be shocked if GV was able to gain headway on a tax exemption for the Mahindra truck, I can't imagine that actually happening.

[ToxicSludge]

Originally Posted by pee wee

I'd be shocked if GV was able to gain headway on a tax exemption for the Mahindra truck, I can't imagine that actually happening.

I'd be shocked if we ever see a mahindra truck.The plan was to bring in the trucks unassembled,then put them together here to avoid the tax,or so I believe that's what they were trying to do.