The United States International Trade Commission (USITC) has instituted an investigation involving the launch and sale of Mahindra & Mahindra's Roxor, an off-highway SUV. Fiat Chrysler Automobiles (FCA) has challenged the launch.
The quasi-judicial, federal agency sent letters on Monday to Mahindra Automotive North America (MANA) and Mahindra & Mahindra in India asking for a response within 20 days to allegations in the complaint submitted by FCA.
“Failure to file a response may result in inferences being drawn against your (M&M) interests,” the letter signed by Lisa Barton, Secretary, USITC, stated.
The matter relates to the US launch of Roxor by M&M. The product, FCA claims, is a copy of its famous Willy’s Jeep, which is a sports utility vehicle brand under its product portfolio.
For M&M, the Roxor launch marked the second attempt at cracking the US market after it aborted plans of launching pick-ups built on Scorpio due to unexplained reasons.
To counter FCA moving the USITC, M&M dragged Fiat to a Michigan district court late last month seeking an injunction against FCA from proceeding with its complaint related to the sale of Roxor.
M&M counter complaint was based on a 2009 agreement with Fiat that allowed the Anand Mahindra-led company to use the copyrighted designs which FCA is contesting.
Fiat responded soon stating that it expects the court to disagree with M&M's claims in the design copyright infringement case, while adding that the court should not urge it from not pursuing the case against M&M.
"FCA expects the district court to disagree with M&M on its contract claims. But even if it did not, the district court should nevertheless decline to enjoin FCA from pursuing its Section 337 claims before the Commission. This presents another basis to deny M&M’s request," FCA said in response to M&M’s claims.
The reply was in response to M&M moving the Michigan court seeking to block Fiat from participating in the USITC claim.
"We are asking the court to block Fiat from participating in the ITC claim - an injunction - because of the fact that they agreed in 2009 to never bring such claims if we use a grille that they approved. The Roxor uses that grille. We are also arguing that Fiat is using the ITC case to harm our Roxor business by creating negative publicity, damaging our reputation and our stature in the marketplace," M&M said in a court filing last month.
Earlier last month, Fiat had approached the US International Trade Commission alleging violation of section 337 of the Tariff Act, 1930 seeking a ban on sale of Roxor in the US.
M&M manufactures the Roxor in India and exports it to US as knocked down kits which are then assembled at its Michigan plant. M&M recently secured funding assistance for Roxor through a tie-up which would help customers buy the vehicle on easy finance schemes.
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