NEW DELHI: Homegrown auto major Mahindra and Mahindra (M&M), which has been eyeing rapid expansion in the United States, has suffered a setback, with a US International Trade Commission (ITC) judge ruling that its off-road vehicle Roxor violated Fiat Chrysler Automobile’s (FCA) Jeep ‘trade dress’.
The judge recommended an exclusion order prohibiting import and sale of any already imported parts of the vehicle.
Added to this, FCA, the Italian-American auto brand, filed a counterclaim before the Eastern District Court of Michigan for permanently ceasing the sale of Roxor in the US, as well as disgorgement of any profit made by Mahindra from sales of the off-roader.
In a regulatory filing on Friday, M&M said that the initial determination made by the Administrative Law Judge of the International Trade Commission was a non-binding recommendation to the ITC and the company had asked for the same to be reviewed. "The ITC will consider the initial determination and review applications filed by the parties and make a final determination," it said.
However, if FCA succeeds in getting a permanent injunction, then Mahindra Automotive North America, a subsidiary of M&M, will no longer be able to sell Roxor in the US. According to reports, FCA expects a final decision will be made by March 13, 2020.
Roxor was launched as an off-road vehicle by Mahindra in March 2018, to be sold in the US and Canada. Soon after the launch, the vehicle became a legal subject between FCA and Mahindra because of its design. In a complaint with the US ITC, FCA alleged that Roxor was a copy of its iconic Willys Jeep and the design elements infringed on some key design elements of Jeep.