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Old 27th December 2010, 22:05   #1
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Default Mahindra & Mahindra is sued by Bannon automotive LLC over Reva

Seems like 2010 is not so good for M&M in terms of Lawsuits. Now an EV assembly startup called Bannon Automotive LLC has sued Mahindra and Mahindra over the rights of Reva NXR for assembly in USA.

Apparently Mahindra and Mahindra had told them that the vehicle is not ready for USA yet. I hope Mahindra learns a lesson or two in Public Relations and international vendor contracts sooner rather than later. Even if Mahindra wins the lawsuit(s) in the future - the damage has been done already because Mahindra has not entered the US market yet.

Here is the summon - Bannon Automotive Lawsuit Against Reva Electric Car Co
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Old 28th December 2010, 14:32   #2
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Default Re: Mahindra & Mahindra is sued by Bannon automotive LLC over Reva

I think M&M has bitten more than it can swallow. Kinetic, Reva, US entry, W 201... Somehow they seem to have too much on their hands which is why they are getting into all this.

OT: My respect for its owners came down drastically the moment I came to know that Keshub Mahindra was amongst the accused in the Bhopal gas tragedy.
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Old 28th December 2010, 14:43   #3
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Default Re: Mahindra & Mahindra is sued by Bannon automotive LLC over Reva

They have already been sued for their trucks isn't it? This is the second one.
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Old 29th December 2010, 00:47   #4
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Default Re: Mahindra & Mahindra is sued by Bannon automotive LLC over Reva

In both cases it seems like Mahindra has some maneuvering space. With the Global Vehicles for the Truck the contract clearly says that if the truck is not ready by June 2010 (some date) then the contract is void. In the case of the Reva EVs, Mahindra is just saying that the car is not ready yet.

In both cases it seems like Mahindra is covered and they follow the strategy to squeeze the foreign partner to re-negotiate/back out of the deal.

I hope they will resolve all these soon.
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