US car dealers drive Mahindra to court


Car dealers across the US filed a lawsuit on 4 June against Indian automaker Mahindra & Mahindra and its US subsidiary, Mahindra USA, for mass fraud. Coast Buick GMC Cadillac, Holloway Buick GMC, Crown Global, Snider Motors, Elk Grove Toyota, Mauro Motors and One World Armada Of Bellevue filed a lawsuit in the US district court of Atlanta, accusing Mahindra and its US subsidiary of conspiring to steal millions of dollars in cash and trade secrets.

SUV_in_the_USAn Atlanta law firm, Krevolin & Horst, and a Miami law firm, Diaz Reus & Targ, filed the complaint and jury trial demand on behalf of the claimants. The dealers are led by Diaz Reus. Mahindra has yet to appoint a legal representative.

Mahindra, India’s largest manufacturer of SUVs and light trucks, had plans to sell its vehicles in the US, in partnership with dealers across the country. The claimants state that five years after making huge investments, they have been “left with idle and vacant ‘Mahindra’ dealerships and empty showrooms, more than [US] $100 million of funds expended, and a bag of false promises”.

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