Mahindra Terminates US Dealerships Contract

Indian manufacturer Mahindra & Mahindra announced last week it has decided, following several years of ups and dons, to end the dealership contract it had with Global Vehicles USA. The move, still denied by the importer of the Indian vehicles, will leave Mahindra with no dealership network in place to sell the first pick-up bound for the US has been approved by regulators.

"Mahindra's relationship with Global Vehicles Inc (GV) has ended, the agreement dated 26th September 2006 between Mahindra and GV having terminated," the US division of the Indian manufacturer says on the official website of the company.

As said, Global Vehicles says this is not the case and, after investing $35 million to prep the way for the 2.2l diesel truck to be sold sold in the US, has already begun taking orders for the model.

“[We are] in the process of taking orders and updating all floor plan agreements in anticipation for Mahindra to provide Global Vehicles with the initial production date," Global Vehicles spokesman Max Butler told Autonews.

Mahindra plans to distribute in the US TR20 and TR40 pickup trucks in both two-door regular cab and a four-door crew cab. They will be powered by the comapny's mHawk 2.2l inline-four-cylinder diesel engine equipped with selective catalytic reduction.

The trucks are expected to have a fuel economy ratings of 30 mpg (7.8l/100 km) and a hauling capacity of 1.3 tons. According to pickuptrucks.com, the pricing for the model will be set around $22,000. The probable launch date, if a distribution agreement is reached, is 2011.