Mahindra to enter U.S. as per schedule: Pawan Goenka

Mahindra & Mahindra said it is working as per its original schedule to enter the US market by December this year, despite facing a lawsuit filed by its exclusive American distributor. The company, however, said the actual launch of the product would depend on the outcome of the ongoing litigation.

“We are going as per (our) original plan for the launch of the pick-up truck in the U.S., but can’t say on the actual time of launch, as it will depend on the outcome of the litigation,” Mahindra & Mahindra (M&M) president (Automotive and Farm Equipment) Pawan Goenka told.
Last month, M&M’s exclusive U.S. distributor, Global Vehicles — which claims to have made an overall investment of $ 103.5 million (about Rs 480 crore) along with franchisees for the launch of the vehicle — filed a lawsuit against the Indian firm before an Atlanta District Court, alleging an inordinate delay in the launch of the pick-up truck.

M&M, which had planned to launch the vehicle by the end of 2009, has missed two deadlines since, due to regulatory issues. It had later set end-2010 as the possible launch date for the vehicle in the US.

The utility vehicle manufacturer had said it was diligently working towards satisfying all US homologation (making the vehicle comply with regulatory standards) requirements and intended to submit its final application as soon as possible.

M&M and Global Vehicles had entered into an agreement on September 28, 2006, according to which the latter became the sole distributor of the Indian company’s motor vehicles in the U.S.

Source: Hindu