Mahindra gest US environmental nod for pick-up truck

Auto major Mahindra & Mahindra (M&M) today said it has received environmental clearance from the US authorities for its diesel pick-up trucks, a step which could bring it closer to launching the vehicle there.

Currently locked in a lawsuit with its US dealer, Global Vehicles, over the delay in launching the vehicle, M&M said it is the first Indian automobile manufacturer to receive a Light Duty Diesel Federal Tier-2 BIN-5 & OBD II Compliance Certificate, which was granted by the Environmental Protection Agency (EPA) of the USA on August 17, 2010.

"With this certification, Mahindra has joined a select group of global automobile manufacturers who have received this certification for a diesel-powered light duty vehicle (LDVs)," the company said in a statement.

The company had planned to launch its diesel pick-up in the US by the end of 2009, but has missed two deadlines since, due to regulatory issues. It has now set 2010-end as the possible time for launching the vehicle in the US.

As a result, its exclusive American distributor -- Global Vehicles (GV) -- slapped a lawsuit against the company in June, citing inordinate delays in the launch of the pick-up. However, terming GV's allegations as without merit, M&M countered the case with a dismiss motion in a US court.

Atlanta-based distributor GV, in the lawsuit filed before an Atlanta District Court, alleged there was an inordinate delay in the launch of the truck, which is based on the platform of M&M's sports utility vehicle, Scorpio. The two firms had entered into an agreement on September 28, 2006.

GV claims to have made an overall investment of $103.5 million (about Rs 480 crore) along with franchisees towards the launch of the pick-up truck.