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Automotive Consumer
AUTOS: Jilted Dealers Sue Indian Automaker
Mahindra lined up hundreds of dealers across the country to sell made-in-India trucks, collecting fees and making promises, but failed to deliver, suit claims.
Mahindra lined up dealers across the U.S. to sell the Appalachia pickup truck. (Photo: Mahindra Group)
Remember those little Mahindra pickup trucks from India that were coming to America, the first vehicle offered here from the Asian subcontinent?
There was a lot of hype back in 2009 when these Tacoma-size trucks with Bosch diesel engines were being promised by the end of the year, and more than 300 U.S. dealerships were lined up to sell them at bargain prices. There also was the expectation of various other Indian-made trucks and SUVs coming through the pipeline.
But three years later, all that seems to have vaporized and the Mahindra trucks have failed to arrive, leaving the dealers with nothing to sell. And they are plenty mad.
U.S. dealers from across the country are suing Indian truck manufacturer Mahindra & Mahindra, Ltd. and its U.S. counterpart, accusing them of fraud, misrepresentation and conspiracy, the attorney representing the plaintiffs has announced.
"Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the U.S. market," said Miami attorney Michael Diaz. "However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S. and elsewhere in clear violation of their commitments."
The mass tort lawsuit was filed in U.S. District Court in Atlanta on June 4 against Mahindra & Mahindra, Ltd, and Mahindra USA, Inc. by dealerships in New Hampshire, Florida, California, New Jersey and Washington. Mahindra, whose North American operations have been based in Atlanta, has imported tractors into the United States for more than 10 years.
According to the suit, dealers across the country paid initial dealership fees, undertook marketing on Mahindra's behalf, built Mahindra showrooms, display platforms and showcases, and hired additional personnel, all at Mahindra's urging. Mahindra began laying the groundwork for the nationwide dealership chain in 2004, courting dealers with high-profile appearances, the suit says.
Led by Arun Jaura, a senior Mahindra executive, the India automaker eventually raised $9.5 million in fees from the dealers, according to the lawsuit. During the next two years, Mahindra continued to reassure the U.S. dealers that its certification process was on target, while in fact it was delaying submitting its documentation to regulators as a pretext for terminating its agreements, Diaz contends.
"Through their false representations, the defendants lured the U.S. dealers into making investments and promoting Mahindra's brand name," Diaz said. "Mahindra is going to learn that trying to outsmart the dealers was a serious mistake, as we will aggressively seek justice for our clients."
Bob Golfen, Automotive Editor for SPEED.com, is a veteran auto writer based in Phoenix, Arizona, with a passion for collector cars, car culture and the automotive lifestyle. SPEED.com fans can email Bob Golfen at
There was a lot of hype back in 2009 when these Tacoma-size trucks with Bosch diesel engines were being promised by the end of the year, and more than 300 U.S. dealerships were lined up to sell them at bargain prices. There also was the expectation of various other Indian-made trucks and SUVs coming through the pipeline.
But three years later, all that seems to have vaporized and the Mahindra trucks have failed to arrive, leaving the dealers with nothing to sell. And they are plenty mad.
U.S. dealers from across the country are suing Indian truck manufacturer Mahindra & Mahindra, Ltd. and its U.S. counterpart, accusing them of fraud, misrepresentation and conspiracy, the attorney representing the plaintiffs has announced.
"Mahindra told the dealers that its light trucks and SUVs were ready for delivery to the U.S. market," said Miami attorney Michael Diaz. "However, Mahindra intentionally delayed certification of its vehicles after obtaining the dealership fees and trade secrets, and began pursuing other partners in the U.S. and elsewhere in clear violation of their commitments."
The mass tort lawsuit was filed in U.S. District Court in Atlanta on June 4 against Mahindra & Mahindra, Ltd, and Mahindra USA, Inc. by dealerships in New Hampshire, Florida, California, New Jersey and Washington. Mahindra, whose North American operations have been based in Atlanta, has imported tractors into the United States for more than 10 years.
According to the suit, dealers across the country paid initial dealership fees, undertook marketing on Mahindra's behalf, built Mahindra showrooms, display platforms and showcases, and hired additional personnel, all at Mahindra's urging. Mahindra began laying the groundwork for the nationwide dealership chain in 2004, courting dealers with high-profile appearances, the suit says.
Led by Arun Jaura, a senior Mahindra executive, the India automaker eventually raised $9.5 million in fees from the dealers, according to the lawsuit. During the next two years, Mahindra continued to reassure the U.S. dealers that its certification process was on target, while in fact it was delaying submitting its documentation to regulators as a pretext for terminating its agreements, Diaz contends.
"Through their false representations, the defendants lured the U.S. dealers into making investments and promoting Mahindra's brand name," Diaz said. "Mahindra is going to learn that trying to outsmart the dealers was a serious mistake, as we will aggressively seek justice for our clients."
Bob Golfen, Automotive Editor for SPEED.com, is a veteran auto writer based in Phoenix, Arizona, with a passion for collector cars, car culture and the automotive lifestyle. SPEED.com fans can email Bob Golfen at
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