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M&M terminates contract with US distributor for pick-ups

31 Aug 2010 Evaluate

M&M has severed its contract with US marketing and distribution partner Global Vehicles Inc. The news comes just three days after M&M received certification from the US Environmental Protection Agency allowing it to sell pick-up trucks in that country. Global Vehicles had filed a lawsuit against M&M in June in a US district court in Atlanta for delaying the launch of its trucks, while also accusing M&M of holding back information about the launch and keeping it in the dark.

M&M had first planned to launch a range of vehicles in the US in December 2008. However, due to repeated delays in procuring the required clearances from safety and emission authorities, the launch was postponed twice. In its suit, Global Vehicles also stated that dealers had spent more than $60 million (Rs278 crore) towards franchisee fees for the right to sell M&M vehicles.

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