We recently reported about Mahindra US dealers filing a case against the Indian automotive giant, Mahidnra & Mahindra. There were allegations against the Indian automaker for failing to launch its product lineup in the US market after receiving huge sum from the US dealers. In a recent statement, Mahindra group has refuted against all allegations, stating ‘We have seen the press release issued by the legal firm of Diaz Reus and Targ which claims to represent some US automobile dealers in a suit apparently filed on June 4, 2012 in the US District Court in Atlanta, Georgia against Mahindra & Mahindra Ltd. and Mahindra USA Inc.
We cannot comment on this as the matter is in the courts but we would like to state that some dealers had earlier filed a suit against Mahindra and Global Vehicles in the US District Court in Missouri. The Missouri Court dismissed all claims against Mahindra in that suit. Significantly, the Missouri Court also ruled that Mahindra could not be held liable for any action of Global Vehicles with respect to its dealers.”
Further, the statement said, “In a separate related development, an International Arbitral tribunal has in February 2012 dismissed similar allegations and claims against Mahindra made by Global Vehicles. Mahindra is in the process of enforcing that arbitration award.”