• Sep 10th 2010 at 7:03PM
  • 48
Formerly just a suspicion that had been whispered about, Global Vehicles USA CEO John Perez has uttered it out loud: Mahindra is thought to have delayed the EPA certification of its Pik-Up so that it could break its contract with GV USA. For four years now, GV has had a contract be the exclusive distributor of the Pik-Up in the United States. However, now that the trucklet has finally received EPA approval, Mahindra voided its contract with GV and hasn't announced any alternative.

Perez says the issue goes back to a sunset clause that Mahindra requested be inserted into the original contract. The belief at the time was that this was for Mahindra to protect itself: if the trucks weren't ready for the U.S. within three years then everyone could walk away and Mahindra wouldn't be open to lawsuits.

According to Perez, the Pik-Up was ready for certification late last year – before the end of the sunset clause – and that the delay from then to now was engineered by Mahindra to break its contract. Reportedly, Mahindra wanted to alter some of the dealer arrangements with GV, and when GV declined, Mahindra put up a wall and refused to communicate. GV felt compelled to sue, but Mahindra went ahead with voiding the contract based on exceeding the time frame. What a mess.

We're no attorneys, but we'd be surprised if this didn't hold up Pik-Up sales for quite some time while the U.S. court system – and arbitration in London – gums things up further. Who knew such a little truck could haul so much subterfuge and skullduggery?

[Source: PickupTrucks.com]

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    • 1 Second Ago
      • 5 Years Ago
      Wow that is a cheap d*ck move on Mahindra's part,
        • 5 Years Ago
        I'm sure that US courts will set this right.

        Esp. if GV can sue for damages based on lost sales, and collect punitive damages based on bad faith dealing. Punitive awards go right back to the local government, so let's hope for a big judgement here. Not to mention lawyers fees.

        And of course, as Mahindra was dealing in bad faith, there ought to be an injunction on any sales until the court case gets settled.
      • 5 Years Ago
      That's what you get for promoting curry-flavored trucks in the US market.
      • 5 Years Ago
      It's considered unreliable in Australia. 30mpg isn't that great when you're paying the higher cost of diesel in the US. I think they realized they weren't going to be competitive in the US market. If a country manufactures nothing and imports everything, its economy declines. Just take a look at the expansion of wealth in coastal China to see how much corporate America has helped China at America's expense.
        • 5 Years Ago
        You might be able to save a bit with that kind of mileage considering that the Ranger is the next fuel efficient pickup at 27mpgs on the freeway (Taco gets up to 26). And it depends on where you live.

        The biggest attraction to the truck is what could be done with it. And the supposed reliability of the engine.
      • 5 Years Ago
      Ugh... looks like a Tacoma with a tumor!
      • 5 Years Ago
      Here's the deal. When we import trucks from India, China, Japan, Korea, or wherever else the corporate bosses can find people who will work on an assembly line for 50 cents an hour with no benefits, I am not concerned where the money goes. I am concerned about the jobs. Why has the recovery been so slow? Because all the American jobs have left the country and have gone somewhere else! Try to buy a shirt made in America...you can't! Or shoes, or anything electronic. In order for jobs to return to America, the corporate guys will want American workers to get paid the same as an Indian worker. I don't want to work on an assembly line for 8 bucks a day with no benefits...do you?
      The Mahindra truck may be a good vehicle, but it takes jobs away from American workers. Buy a Ford or a Chevy or even a Toyota, Honda, Hyundai or Honda that is built in the USA...so Americans can have decent jobs.
      • 5 Years Ago
      I hope GV takes those crooks to the cleaners. Hopefully the suit will be in U.S. Federal court, and the court will allows the plaintiffs to seize some of Mahindra's U.S. assets to satisfy the judgment.
      • 5 Years Ago
      Things just seem to go badly for this guy. Just look at his defunct Crosslander operation. This truck picked the interest of quite a few buyers, let's hope they can get it sorted out soon!
      • 5 Years Ago
      • 5 Years Ago
      All the comments seem to assume that the allegation in the article is true.
      This could just be Authors opinion or Just an author struggling to get hits on his story.
      Internet is a space full of bad journalists who can seem to find a regular job.

      I am not cheering for Mahindra... actually I dont care. But I see so much hate in the comments, Just generated by one article ...where every one picks up where the author left...

      I have said many times earlier and will mention again... Give a product a its full chance... and dont buy just because its NA made...
      All your Kids' toys are Made in China. you have no other option any more.
      All our cars will be made in China... and we wont have any other option... unless we get NA automakers to think by not buying NA vehicles just because they are local... but based on the Value they provide.
      • 5 Years Ago
      OK, OK. I give up ! I had really thought about buying one of these as I don't need a monster truck that can tow a house and I'd like to see some decent mileage. Or at least had hoped that these would sell well and Detroit would wake up to the fact that not everybody needs a monster truck with leather seats and 12 cup holders. I just want a basic truck that gets decent mileage, so I'll go buy a regular cab 1500 with a V8, suck up the lousy mileage and screw the environment.
      • 5 Years Ago
      Does anyone really want this truck anyway???
        • 5 Years Ago
        I was kind of excited about it until I saw what the supposed price was gonna be. I told a couple of the guys I work with about it and even they lost all interest.

        And now seeing how Mahindra runs it's show, I wouldn't want anything to do with that company.
      • 5 Years Ago
      Look at Mahindra's stock performance lately. If this "scandal" causes a dip, I might jump in.
        • 5 Years Ago
        I don't think I'd ever want to invest in a company that tried to screw America, let alone any company that is known for being intentionally dishonest.
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