Mahindra counters US partner's lawsuit

Mahindra & Mahindra, India’s biggest sports utility vehicle maker, today said it had filed a motion to dismiss the lawsuit by Global Vehicles (GV) USA Inc, its dealer partner in the US.

GV, which had sued Mumbai-based company two weeks ago, was the exclusive partner of M&M responsible for distribution of a range of vehicles including pick-up trucks and sports utility vehicles (SUVs).

“M&M firmly believes GV’s claims are without merit and will vigorously contest the lawsuit. M&M is diligently working towards satisfying all US homologation requirements and intends to submit its final application as soon as possible,” an M&M spokesperson said in a statement.

GV’s sudden decision of suing M&M for delaying the launch and petitioning before a US court to prohibit the car maker in engaging in business with any other US distribution company, came as a big surprise for the SUV giant, which was all set to launch its vehicles in the US in December this year.

Over the past four years, GV USA had signed up more than 350 dealers and spent more $35 million (Rs 162 crore) preparing for the launch. It also alleged that M&M had lost time in getting the final safety and emission certificates from the respective authorities.