Mahindra & Mahindra Ltd.

Global Vehicles USA Inc, the Atlanta-based company that had joined hands with Mahindra & Mahindra (M&M) to launch pick-up trucks in that country, has sued the latter for continuously delaying the launch.

GV USA reportedly filed the suit on Monday, in a district court in Atlanta, alleging that while it had signed up more than 350 dealers and spent more than $35 million (Rs 162 crore) in preparing for the launch, M&M lost time in getting the final safety and emission certificate. The Atlanta-based company also accused M&M of holding back information about the launch and keeping it in the dark.

M&M had signed the distribution agreement with GV in 2006. It had planned to launch its range of vehicles in the US in December 2008. However, due to repeated delay in procuring the required go-ahead from safety and emissions authorities, the launch got postponed twice.

In its suit, Global Vehicles also said dealers have spent more than $60 million (Rs 278 crore) towards franchisee fees for the right to sell Mahindra vehicles. It has also initiated arbitration proceedings against the India Company.