Mahindra & Mahindra has won the arbitration filled against them by their former US distributors Global Vehicles. This clears way for country’s largest utility manufacturer to make fresh entry into the US market. Global Vehicles had accused Mahindra of violating the distribution agreement for selling vehicles in US; however, the arbitrators held that the agreement had ended according to its sown term and Mahindra had not violated any laws in its dealings in US. The US courts also dismissed another case filed by Global Vehicles (GV) and awarded M&M cost of arbitration including legal fees and other expenses.
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| Image Credit: http://www.oncars.in |
Mahindra planned to enter US market with a pickup truck based on Scorpio in 2010, but had to stall its activities due to this arbitration by GV. The way is finally cleared for Mahindra to enter American market – and this time with even better range with new XUV500 and few Ssangyong products available for exports. M&M has declined to provide any information on its plans, but looking at company’s aspirations it won’t be long before their vehicles hit American shores. Mahindra may also get support from their America partner Navistar for distribution, service and probably even setting-up an assembly-line in future, depending upon response there.
M&M is keen on expanding in the global market and has taken many steps in that direction – takeover of Ssangyong a little over a year ago, plans to export XUV500 to European market and a bid to buy Saab Automobiles – and this recent development is a shot in the arm for company’s ambitions.
source: http://www.oncars.in
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