Anand Mahindra terms US lawsuit against M&M as 'groundless'

India's leading auto-maker Mahindra & Mahindra, which is facing a legal battle in the US market, has termed the lawsuit filed against it as 'groundless'. Yes, an unfortunate development. Groundless charges; Can't comment since now legal,  tweeted Mr Anand Mahindra, Vice-Chairman of M&M, in a response to the question asked about the lawsuit filed by the US dealer.

Global Vehicles, an Atlanta-based distributor of the Mahindra's upcoming pick-up vehicles in the US market, has filed a lawsuit in an Atlanta District Court over the excessive delay in the launch of this vehicle. The pick-up was scheduled to be launched in year 2009 but Mahindra had revised the launch date to the end of year 2010 by saying that the vehicle needs to be tested extensively on American roads before acquiring the clarification from US regulators.

When inquired, if the company will be able to launch the vehicle in US on the scheduled time after this lawsuit, M&M spokesperson stated that Mahindra remains committed to launching its products in the US market. This matter is now under litigation and the company would not like to comment further at this stage on these unfortunate developments.

US based distributor had filed the lawsuit on the 14th of June claiming that it has spent about to $35 million in the arrangements for the launch including the initial fee of $8.5 million for distribution appointment. The claim further includes the expenditure of more than $60 million in franchisee fees to acquire the right to sell M&M's vehicles.