Global Vehicles Takes Steps to Protect 8,300 Potential U.S. Jobs

Nov 11, 2010, 08:00 ET from Global Vehicles USA, Inc.

ALPHARETTA, Ga., Nov. 11, 2010 /PRNewswire/ -- Global Vehicles USA, Inc., announced today that it will be taking new steps to protect more than 8,300 potential U.S. jobs associated with the launch of Mahindra pickup trucks in the United States, including requesting that the states of Florida and Georgia hold administrative hearings to determine whether Mumbai, India-based Mahindra & Mahindra and its local employees are violating state motor vehicle franchise laws.

Global Vehicles has been the exclusive U.S. distributor of Mahindra vehicles since 2006, and the company has recruited a network of 347 dealers who are prepared to sell Mahindra pickups immediately, now that they have passed federal certification tests.  

Mahindra threw the launch plans into disarray this summer by attempting to arbitrarily remove Global Vehicles as its distributor, and by suggesting through a spokesman that it may do business in the future with some dealers but not all of them.  

Earlier this year, Mahindra said the launch was on-track for late 2010.  Now the company refuses to commit to a launch date.

"We are ready to sell trucks, and that remains our goal," said John Perez, CEO of Global Vehicles.  "By our calculation, Mahindra's delays and disruptions are putting more than 8,300 potential jobs at risk at our dealers, at the ports, in the trucking industry and throughout the supply base."

According to Perez, these figures count only the employment associated with the launch phase.  The long-term jobs outlook is even greater because the U.S. economy is recovering, and consumers want a 30-mile-per-gallon compact truck that can haul as much as a heavy-duty pickup.  

"Global Vehicle's dealers are experienced and well capitalized, and have access to more than $1 billion in credit facilities to support their facilities, order vehicles and deliver outstanding customer service," Perez said.  "We believe first-year sales could reach 30,000 units, worth $750 million."

Global Vehicles has asked the Georgia Department of Revenue and the Florida Department of Safety and Motor Vehicles for hearings to determine whether Mahindra is violating state franchise laws by acting in bad faith with Global Vehicles and its dealers, who together have invested more than $100 million to bring Mahindra trucks to the United States.  

Global Vehicles also has invoked the arbitration clause in its contract with Mahindra, and sued Mahindra in United States District Court for the Northern District of Georgia, Atlanta Division, to protect its contractual rights.  Both cases are pending.

Global Vehicles U.S.A., Inc., based in Alpharetta, Ga., is the exclusive importer and distributor in the United States of motor vehicles produced by the automotive arm of the Mahindra Group (www.mahindra.com), a $6 billion-plus diverse conglomerate.  

SOURCE Global Vehicles USA, Inc.



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