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Judge gives dealers' fraud suit against Mahindra the go-ahead

Zach Bowman — Tue, 12 Mar 2013 17:44:00 EST

Filed under: Budget, Truck, Government/Legal, Work, Earnings/Financials, India, Diesel

Automotive News is reporting that a US District Court has ruled that a lawsuit by five dealers against Mahindra & Mahindra can move ahead. The Indian automaker had moved to have the case dismissed, but District Judge Thomas Thrash in Atlanta said the plaintiffs presented enough evidence for "a reasonable person to infer that Mahindra USA was involved in a plan to deceive the dealers." The group alleges that they were defrauded by the manufacturer when Mahindra said it planned to create a new brand of light trucks in the US. It's the latest in a long line of misfortunes for the automaker in the US market.

Mahindra spent some four years working with Global Vehicles USA, a private US distributor just outside of Atlanta. At one point, Global Vehicles boasted a dealer network of some 350 retailers ready to sell small, Indian-made diesel pickups in the States. Mahindra promised more products would follow after the utilitarian four-wheel drives, but a spate of delays quickly derailed that plan. The distribution deal wound up dead by 2010, leaving many dealers with empty showrooms and pockets. While a US District Court in Missouri dismissed one case against Mahindra on the grounds that the distribution deal was with Global Vehicles and not the Indian automaker, the current suit seems ready to move forward.

Judge gives dealers' fraud suit against Mahindra the go-ahead originally appeared on Autoblog on Tue, 12 Mar 2013 17:44:00 EST. Please see our terms for use of feeds.

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Mahindra gives up altogether on small diesel pickup for U.S.

Jeremy Korzeniewski — Wed, 11 Jul 2012 15:43:00 EST

Filed under: Truck, India, Diesel, MISC

With apologies to the Beatles, it's been a long and winding road for those waiting to get their hands on the steering wheel of a small, diesel-powered pickup from Mahindra. Here's the good news: Something definitive has finally been heard from the Indian automaker. Here's the bad news: It's bad news.

According to Reuters, Mahindra "recently decided not to proceed further with the project due to changes in the U.S. regulatory and market situation." In other words, the truck we've long been expecting isn't going to happen. That said, "M&M will continue to monitor the U.S. situation and remain flexible with its approach to this market."

We won't outline all the sordid details on what happened between Global Vehicles, Mahindra and its would-be dealer base - read all about it on these pages - but suffice it to say delays were felt, feelings were hurt and lawsuits were filed.

Some analysts quoted by Reuters suggest Mahindra may regroup and focus on bringing its Korean Ssangyong subsidiary to the States in lieu of its rugged pickup and SUV wares, but we're not holding our breath for either.

Mahindra gives up altogether on small diesel pickup for U.S. originally appeared on Autoblog on Wed, 11 Jul 2012 15:43:00 EST. Please see our terms for use of feeds.

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Mahindra's U.S. plans on indefinite hold, Alabama plant denied

Jeremy Korzeniewski — Fri, 23 Dec 2011 17:59:00 EST

Filed under: Budget, Truck, India, Diesel, MISC

Fans of small, fuel-efficient pickup trucks: We hate to tell you this, but it's becoming increasingly clear that Mahindra's long-awaited entry into the United States market just isn't going to happen anytime soon. We're just as disappointed as the rest of you - with the recent demise of the Ford Ranger, there simply aren't any truly compact trucks left in American dealership showrooms.

We got a wee bit of unfounded hope when rumors began swirling that Mahindra was in the midst of closing a deal with Navistar, a longtime partner in its home market of India, to manufacture the T20 and T40 trucks in a new plant in Alabama. According to the Indian automaker, that's not going to happen. Here's a snippet from Mahindra's statement on the matter:

There have been reports in certain quarters of media and online space stating that Navistar USA will produce Mahindra's T20 and T40 pickups in Alabama, USA in 2012, which are completely baseless & incorrect. If and when there are any material developments, Mahindra & Mahindra Limited will communicate them directly and transparently.

So there you have it. To put it mildly, we've lost nearly all hope of seeing these small diesel-powered pickup trucks in American driveways, which is a shame.

Mahindra's U.S. plans on indefinite hold, Alabama plant denied originally appeared on Autoblog on Fri, 23 Dec 2011 17:59:00 EST. Please see our terms for use of feeds.

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Angry dealers sue Mahindra

Zach Bowman — Mon, 23 May 2011 14:01:00 EST

Filed under: Truck, Government/Legal, Work, India

Mahindra Pik Up - Click above for high-res image gallery

The dust-up between Indian automaker Mahindra and its jilted would-be American dealers is set to get a little nastier. According to Automotive News, several dealers have joined a lawsuit against their former partner that seeks both a refund for any fees paid to the truckmaker as well as punitive damages. One Jerry Ackerman is at the center of the suit. He paid $450,000 for three Mahindra franchises and now alleges that both Mahindra & Mahindra and Global Vehicles U.S.A. are in breach of contract. Ackerman's lawsuit is now seeking class action status.

Automotive News reports that the lawsuit could eventually represent as many as 350 dealers who signed up for franchises in the States. So far, around 45 dealers have shown interest in joining Ackerman's effort. Meanwhile, another 70 dealers recently met in Atlanta to discuss potential legal action against Mahindra. That lot has decided to file grievances against Mahindra with individual state motor vehicle agencies.

As you may recall, Mahindra originally contracted with Atlanta-based Global Vehicles U.S.A. to distribute its pickups in America, but later backed out of the deal. That left Global Vehicles U.S.A. and its dealers in a lurch. Global Vehicles U.S.A. initially filed suit against Mahindra but later dropped the effort.

The future prospects of Mahindra's diesel TR20 and TR40 pickups in North America remains uncertain.

Angry dealers sue Mahindra originally appeared on Autoblog on Mon, 23 May 2011 14:01:00 EST. Please see our terms for use of feeds.

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Report: Global Vehicles drops lawsuit against Mahindra

Chris Shunk — Thu, 17 Feb 2011 09:29:00 EST

Filed under: Truck, Government/Legal, India

Global Vehicles U.S.A. was under contract to import the diesel-powered Mahindra pickup, but the Indian automaker claimed that the pact had expired. The drama between the two companies began over the summer when GV filed suit against Mahindra in Atlanta, GA claiming that the automaker was attempting to cut the importer out of the action. Mahindra later flat-out refused GV's $35 million order back in September, leading to more bad blood.

But now, Automotive News is reporting that Global Vehicles has withdrawn its lawsuit, but the importer isn't throwing up the white flag just yet. Court papers show the suit was withdrawn because GV chose instead to throw all its efforts into a British arbitration panel that will rule on the case in August. The London panel reportedly refused to rule on the case while there was also a lawsuit in the States.

Mahindra also found itself at the wrong end of the publicity machine in the last week as the Environmental Protection Agency gave its small diesel pickup a lackluster fuel economy rating of 19 miles per gallon in the city and 21 mpg on the highway. Those numbers are nowhere near the 30 mpg Mahindra has promised all along, but GV CEO John Perez has apparently told AN that the vehicle tested was the four-wheel-drive equipped four-door model. Perez claims that the rear-drive, two-door model will have 40 percent better fuel economy than the loaded-up four-door, and the 30 mpg number will still happen.

We know four-wheel-drive and the extra weight of a crew cab configuration will hurt fuel economy, but in our mind, that still doesn't add up to a 40-percent drop in fuel efficiency. Either way, we'll have to hold out hope that Perez is right, because unless the model offers exceptional economy, we think it's going to have a seriously hard time building a business case for itself among America's consumers.

[Source: Automotive News - sub. req.]

Report: Global Vehicles drops lawsuit against Mahindra originally appeared on Autoblog on Thu, 17 Feb 2011 09:29:00 EST. Please see our terms for use of feeds.

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Mahindra TR40 pickup only good for 19/21 mpg?

David Kiley — Sun, 06 Feb 2011 12:37:00 EST

Filed under: Truck, Etc., Diesel

Mahindra Pik-Up - Click above for high-res image gallery

It's hard to understand how Indian truck/SUV maker Mahindra could miss its fuel economy goal by one-third. Mahindra's supposed U.S. distributor, Global Vehicles of Marietta, Ga. (which has been embroiled in an opera of lawsuits, name-calling and musical chairs management concerning its deal with the Indian manufacturer), has had an oft-stated goal of 30 mpg highway fuel economy for the clean diesel truck.

According to FuelEconomy.gov, however, the four-wheel-drive Mahindra TR40 crew-cab pickup with a four-cylinder diesel engine and automatic transmission has been rated by the EPA at only 19 mpg city/21 mpg highway. By comparison, the 4x4 2011 Dodge Dakota with a 3.7 liter V6 engine is rated at 14/18. The TR40's miserable highway mileage doesn't even match the Ford F-150 3.7 liter 4x2, which is rated at 16 city/23 highway. The 4x4 Ford Ranger, like the aforementioned Dodge, is rated at 14 city/18 highway. Mahindra's compact pickup truck offers a towing capacity of 5,000 pounds and a payload of 2,765 pounds.

Mahindra and GV had been counting on the fuel economy angle to get on truck buyers' radar. But the current differential between the Mahindra TR40 diesel truck's mileage and that of the gas-powered competition is unlikely to turn heads or create headlines. Global Vehicles told PickupTrucks.com: "Good fuel economy will be an important part of the truck's appeal, and we're eager to see the fuel economy for all of the models, especially the two-door, two-wheel-drive model, which Mahindra told us to expect would achieve close to 30 mpg."

It's hard to imagine Mahindra squeezing out nine additional highway miles per gallon just by stripping out the 4-wheel-drive system.

Gallery: Mahindra Pik-Up

Continue reading Mahindra TR40 pickup only good for 19/21 mpg?

Mahindra TR40 pickup only good for 19/21 mpg? originally appeared on Autoblog on Sun, 06 Feb 2011 12:37:00 EST. Please see our terms for use of feeds.

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Report: Mahindra pickups could hit U.S. in under 90 days

Nik Bristow — Sat, 08 May 2010 18:10:00 EST

Filed under: Budget, Truck, India, Diesel

Mahindra pickup - Click above for hi-res image gallery

Plagued by a series of setbacks, delays, and that little thing called "the chicken tax," Mahindra has yet to receive EPA Tier 2 Bin 5 federal emissions certification for its TR20 and TR40 pickups. But man, they must be getting really close. Right?

John Perez, CEO of Global Vehicles USA, Mahindra's exclusive U.S. distributor, says that all the emissions testing on the trucks has been completed and the paperwork is being submitted to the EPA for final approval. Approval itself is expected to take about 30 days. At that point, Global Vehicles could begin importing the trucks to the United States. They'd arrive on our shores 30 to 60 days later.

By our math, that sounds like we could have Mahindra pickup trucks on U.S. roads before the end of August, but neither Perez nor Mahindra's corporate offices are talking sale dates yet. Experience has probably taught them not to make predictions, but with 330 dealers signed up and raring to go, we're sure that official sales date can't come soon enough for any of the parties involved.

When they eventually go on sale, Mahindra pickups will be offered in two configurations: a two-door regular cab, the TR20, and a four-door crew cab, the TR40. Both will offer Mahindra's slightly modified version of the mHawk 2.2-liter inline-four-cylinder diesel engine. Official EPA numbers obviously haven't been determined yet, but the trucks are expected to have fuel economy ratings around 30 miles per gallon on the highway. Not too shabby considering their 1.3-ton hauling capability. Pricing is expected to start around $22,000.

Gallery: Mahindra Pik-Up

[Source: Automotive News via PickupTrucks.com]

Report: Mahindra pickups could hit U.S. in under 90 days originally appeared on Autoblog on Sat, 08 May 2010 18:10:00 EST. Please see our terms for use of feeds.

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Mahindra maps out 'potential' U.S. dealer network for forthcoming small diesel pickup

Chris Paukert — Wed, 18 Nov 2009 08:59:00 EST

Filed under: Car Buying, Truck, Work, India, Diesel, Off-Road

Mahindra 'potential' dealer network - Click above to enlarge

No, you're not looking at yet another voting map, or even a topographical depiction of the WalMarting of America (trust us, you don't want to see that). The image seen above is that of Mahindra's "dealership network." We're putting quotes on that because the Indian automaker says on its website that the dots represent only "potential" outlets for their forthcoming small diesel pickup trucks.

Even if the map hasn't been finalized (and doesn't have an associated time frame for each franchise coming on-line), the map is interesting because it illustrates widespread interest in the brand. Credit for that in part should go to the promise of a robust, cheap, and fuel-efficient small truck from a major global player - but it should be equally predictable because there are lots of showrooms sitting empty (or on their way to doing so) thanks to the downsizing of dealer networks associated with General Motors, Chrysler and other automakers.

We could have predicted widespread traction for the brand in regions like the Midwest and even the Northeast, but the concentration of likely franchises in Florida surprises us. Either way, we'll have to wait a bit longer to see just who finally ends up selling the automaker's TR20 and TR40 models - they are expected to go on sale in the first quarter of next year. Hat tip to Sunny B!

Gallery: Mahindra Pik-Up

[Source: Mahindra]

Mahindra maps out 'potential' U.S. dealer network for forthcoming small diesel pickup originally appeared on Autoblog on Wed, 18 Nov 2009 08:59:00 EST. Please see our terms for use of feeds.

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Appalachian Breakdown: Mahindra to dump regional pickup name for alphanumerics?

Dan Roth — Fri, 10 Apr 2009 16:27:00 EST

Filed under: Truck, Marketing/Advertising, India

Rather than get all hung up on what's in a model name, Mahindra may want U.S. consumers to become more familiar with the new-to-America brand itself. Initially, the Indian automaker's mid-sized pickups were expected to carry the "Appalachian" moniker when they came to America, but now, PickupTruck.com is reporting that the trucks will probably go alphanumeric, if recent patent filings for TR20 and TR40 designations are anything to go by.

The website speculates that the "20" and "40" indicate two- and four-door versions of the trucks, which will be tweaked to better cater to buyers in the US market. The imported, Toyota Tacoma-sized, diesel-powered newcomers are expected to be available by December, no matter what they're called.

[Source: PickupTrucks.com]

Appalachian Breakdown: Mahindra to dump regional pickup name for alphanumerics? originally appeared on Autoblog on Fri, 10 Apr 2009 16:27:00 EST. Please see our terms for use of feeds.

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