Mahindra open to Navistar alliance

[MahindraPlanet]

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Goenka says that Mahindra would be open to an alliance with Navistar in the US. Not clear if this would be for manufacturing or distribution. India press is definitely indicating that Mahindra is done with GV. Read it here:M&M remains non-committal on US launch

[howam00]

well it confirms everything we already knew. Too bad Goenka did just outright say they are going to partner with Navistar and get the ball rolling. That would have been actual news.

[Andy]

Such a shame that Mahindra has not kept it's agreement with Global Vehicles. Will be interesting to see what happens.

[blue7.3]

well... whatever.

[jrel85]

Although bad for GV, I can't help but feel that this would make a lot of sense. If you look at the market for this truck it would only make sense to use the already established Navistar dealer and service network. This would be a big selling point as they would not have start from scratch and being backed by a big name like Navistar would help with credibility. They would also have diesel mechanics already on staff to service the machines. May make even more sense to re-badge the trucks and suv's as International's. I feel that the agricultural market in particular would eat this up, especially with the rumor of $4+ per gallon gas and the incentives for green technology. This creates a market for the vehicle, a network of established dealers to sell the vehicle, and service centers to service the vehicle. Sounds like a winning combination for me.

[pee wee]

Well, it makes a lot of sense except . . . what about GV and their lawsuit, what about 350 dealers that paid money and would not be amused to be passed over . . . seems like if they're doing business in this country that leaves them open to having to pay out more money than it's worth to do business here. If I were Mahindra, I'd either patch things up with GV (by all appearances that's not going to happen) or stay out of this country until the lawsuits are settled and then link up with Navistar. I don't know why they refuse to do business with their business partner, it just doesn't make sense to me- then again, maybe I should be more worried if I did understand them.
It does bring to mind a story a friend told about a guy from India he worked with; seems this guy and his buddies would go to "houses of ill repute" and head into the men's room right away to satisfy themselves. The strategy was to make the service providers work harder for their money, thereby gaining an advantage in their minds. Maybe doing business in a straightforward manner doesn't "do it" for Anand and the guys.

[Bugman]

GV already set up a network and I hope GV can shut them down from this in court. You can't just contract out work and when the contractor is done just walk away.. Look at what these 350 dealers who had to -BUILD- to Mahindra's specifications. So its not just about franchise fees.

[MahindraPlanet]

The mind of Mahindra works in mysterious ways. I feel badly for GV. There is no doubt in my mind they got boned by M&M. What I’ve never understood was why Mahindra didn’t work with Navistar to begin with. They have had a business relationship for years. But maybe Navistar told them ‘no’ a long time ago.

Clearly, Mahindra intends to fight the legal battle to the end. I don’t know the financial details of either company, but I’m pretty sure that Mahindra has the resources to outlast GV. Let’s face it, how long can a distribution company exist with no product to distribute? They are living off the dealer money. I would bet that Mahindra will approach (or has approached) all of those dealers and will try to sway them away from siding with GV by using the promise of product to sell. Pre-production photos of a new pickup would be pretty motivating right about now. And if the dealers got together and decided to sue GV, it would all be over. Right or wrong, my guess is that Mahindra intends to bury GV. Even if GV wins in court (probably years from now), this fiasco will definitely end GV’s relationship with Mahindra. Given their track record, Mahindra is going to do whatever they want to do in the mean time. The best thing GV might try to do at this point is attempt to settle with Mahindra, cut their losses, and find another product to sell. I hope I am wrong.

[pee wee]

So if you're Navistar and you see all this going on, do you just figure it will never happen to you?

[Bugman]

Originally Posted by pee wee

So if you're Navistar and you see all this going on, do you just figure it will never happen to you?

It's kinda like foolin around with a married woman. Even if you get serious with her she'll end up cheating on you too...