Auto News

AutoGuide News Blog

The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
 |  Sep 27 2010, 5:09 PM

In the latest installment of the Mahindra/Global Vehicles Soap Opera, it appears that the first order for U.S. spec trucks, now called Pik-Ups has been placed, according to a statement released by GV.

Mahindra and Global have been battling each other in court, regarding a contract clause which stated that the former could wash its hands clean of the deal if the trucks didn’t meet U.S. EPA emissions certification. Now that they have, Mahindra still wants to rescind the contract between it and GV, but there’s evidence to suggest that the company’s argument won’t hold up in court, partly because Mahindra submitted its EPA paperwork a number of days after the June 11 deadline passed and also the fact that GV has already invested considerable effort and $100 million in setting up a distribution network for the trucks in the U.S. As a result of all this, it looks likely that Global Vehicles will retain exclusive rights to sell the trucks.

Said GV’s CEO John Perez “We trusted Mahindra when they said they wanted to cap their losses if the vehicle couldn’t be sold here. We patiently waited and accommodated Mahindra through years of delays and kept an extremely powerful distribution network intact while the factory worked through the complicated task of meeting U.S. emissions standards. We did this because we believed we were all working toward the same goals. Now Mahindra is trying to change the rules. We delivered our end of the contract, and we’re ready to get down to business.”

Although the GV/Mahindra saga is far from over, the announcement of a $35 million initial purchase order by GV, suggests that after a long period of virtual stalemate, things appear to be finally moving forward.