Mahindra terminated the agreement with US Importer
India’s Mahindra & Mahindra Ltd. has previously signed a four years agreement with the US Importer, Global Vehicles USA but now they have announced that they are going to end up this agreement which is quite shocking for the other side. This all announcement was made just after receiving a key U.S. government approval to sell its small-engine diesel pickups in the United State.
On Thursday this news got flashed on the website of Mahindra and as a response to this Global as acknowledged this thing as ‘inaccurate’. According to Global, Mahindra has attempted to terminate the agreement and has given the warning that “such attempted termination is invalid under applicable laws of the United States and the State of Georgia, something which Mahindra continues to disregard.”
This announcement has affected Global’s reputation badly because almost 300 to 350 retailers who have signed franchise agreement with Global have got many doubts regarding their agreements which are true to some extent.
The statement which was provided on the website says that “Mahindra’s relationship with Global Vehicles Inc. [sic] (GV) has ended, the agreement dated 26th September 2006 between Mahindra and GV having terminated”.
This statement was really bad for Global and they are really showing harsh response towards this action by Mahindra so let’s see what comes next from this relation.