US distributor for Mahindra, and Mahindra, Global Vehicles, has sued M&M owing to the delay in the launch of the model Scorpio in the US market. The distributer has alleged in Atlanta District Court that the company has already missed the launch deadlines twice. It has spent nearly $35 million in preparation for the launch in US and nearly 360 dealers have paid the franchisee fee close to $60 million for the rights to sell Mahindra Scorpio in the US market.
Mahindra and Mahindra is expected to get the clearance for the model from the US Environmental Protection Agency next month and will be ready to launch the model. It will begin production September so that its SUVs and trucks are commercially available in the market by December 2010.
M&M has declined to comment on the current status and the official spokeswoman said that the company remains committed to the US launch of its pickup trucks and SUVs and any allegations are without any merit.
