Ssangyong Brand Could Represent Mahindra in USA

After enduring much abuse about our Mahindra/Navistar/Alabama story over a month ago, there has still been no official announcement on the actual purpose of the facility being leased by Navistar in Muscle Shoals, Alabama.  As long time readers of this blog know, we are used to all kinds of abuse and have subsequently encased the Mahindra Planet cyber-office in a special alloy which is completely impervious to hate and utter disdain.

So the seldom loved and nearly universally loathed Mahindra Planet is at it again.  Well, we were at it last year when we ran a post about SsangYong Motor Co. chairman, Yoo Lee, stating that Ssangyong products will be sold in the US within the next five years, but possibly within the next two to three.  MP continues to stand behind the December post and our sources, despite Mahindra's public denial that they intend to produce a Mahindra pickup in Alabama.  Whether or not that pickup is actually a current Mahindra-branded product, or a Mahindra-owned product (like the Ssangyong Korando Sports) remains to be seen.

New Rumors of SsangYong Entering US
Two weeks ago AutoGuide.com ran a post in which they stated that they "have good reason to believe" that Mahindra will bring the SsangYong Korando Sports to the US instead of any other Mahindra owned product.

As MP stated in back in March of 2011, bringing the SsangYong pickup here could easily create a loophole which allows Mahindra to enter the US market with a compact diesel pickup, but avoid any previous commitment to former import and distribution partner, Global Vehicles USA or their established dealer network.

The Ssangyong brand name (or as PickupTrucks.com’s Mike Levine surmises, a newly created brand name) could be used on any Mahindra or Ssangyong built vehicles imported to the United States. Creating a new brand dedicated to the US market could potentially circumnavigate the ongoing legal battle between GV and M&M. This could allow Mahindra to establish its own import and distribution enterprise, and bypass the current Mahindra dealer network set up by GV. The dealers and GV are legitimately concerned that they could be left in the dust. 

MP Still Believes Navistar Will Build Mahindra Pickups in Alabama
The Mahindra pickups built here could very well be any Mahindra product including Mahindra, SsangYong, or Reva branded vehicles.

Mahindra is extremely dedicated to the globalization of the Mahindra brand name and has established decent brand recognition in the US with their tractor and information technology divisions. On the flip side, the Mahindra small truck brand in the US has become a symbol of Mahindra’s inability to create a truly global automotive product and execute an enchanting business and marketing strategy in the United States. A new brand name may help bury these negative impressions.

Sources: AutoGuide: SsangYong Korando Sports Released, Headed to America?
MahindraPlanet: US to see SsangYong SUV's in 2-5 Years

Mahindra Press Release Full of Holes

Mahindra & Mahindra Ltd hastily issued a press release on Saturday in response to the Mahindra Planet post from Thursday regarding the possible assembly of Mahindra pickup trucks in a Navistar-owned facility in Alabama.  Interestingly, Mahindra is falsely stating that MP believes that Navistar will be producing Mahindra TR20 and TR40 pickups.  It is MP’s understanding that Mahindra will produce these vehicles (build all components in India) and that Navistar will be the assembly partner and possible distributor for Mahindra vehicles in the USA.  This would be a partnership similar to the one Mahindra established in Brazil in 2008.  Brazilian company, Bramont, assembles and sells Mahindra pickups exclusively for the Brazil market. Mahindra produces the vehicles, Bramont assembles and distributes them. Read this article: Indian Mahindra Starts Production in Brazil

Never mind the fact that Mahindra also purposely accidentally misspelled the names of it’s own pickups as "T20 and T40", or that Navistar will not confirm or deny that they are involved in this project.  Very strange don’t you think?  Here is the Mahindra press release:

MUMBAI, India, December 17, 2011 /PRNewswire via COMTEX/ -- "There have been reports in certain quarters of media and online space stating that Navistar USA will produce Mahindra's T20 and T40 pick ups in Alabama, USA in 2012, which are completely baseless & incorrect. If & when there are any material developments, Mahindra & Mahindra Limited will communicate them directly and transparently."

Sources: As hyperlinked

Revealed: US Mahindra Pickups to be Made in Alabama Beginning 2012

Mahindra Genio DC (TR40 US)

2013 Mahindra TR20 and TR40
Mahindra Planet has been working to confirm that a 2-million-square-foot facility in Muscle Shoals, Alabama which was recently leased by Navistar, will begin assembling Mahindra TR20 and TR40 compact diesel pickup trucks beginning in the first half of 2012 and sell them in the United States as 2013 models soon after.

Despite the infamous fallout and between Mahindra & Mahindra Ltd (Mahindra) and US importer/distributor, Global Vehicles (GV), Mahindra Planet understands that Mahindra has continued to work with Navistar to locate a suitable assembly location for Mahindra vehicles in the US.  Mahindra Planet was tipped regarding this potential news shortly after Navistar announced that they were signing a 10-year lease for the facility on September 27th.

A US Mahindra Truck Plant
The mile-long facility in Northwestern Alabama (about 70 miles west of Huntsville) will be leased by Navistar (International Trucks) beginning January 1st, 2012.  The 10-year lease was officially signed on October 24th.

A Navistar press release on the announcement does not disclose what product will specifically be produced at the former rail car manufacturing plant.  However, the company intends to make the facility a cornerstone of a planned expansion strategy.  The Alabama Trucking Association references state-filed documents which state that the purpose of the lease is for Navistar to engage in its “business of motor vehicle and related product manufacture and assembly”.

Requests for comment by Navistar, Mahindra, and Global Vehicles have gone unanswered.  However, sources near the project have stated that engineers from India have regularly visited the facility over the last 2 years, and that Navistar plans to assemble a pickup truck with a diesel engine from India there.  Navistar’s press release states that “Navistar intends to finalize its initial operating and product plans for the facility in the coming months, and expects to disclose those details by year end.”

Mahindra Genio SC (TR20 US)

The Navistar-Mahindra Connection
Navistar and Mahindra & Mahindra Ltd have a long-standing business relationship which reaches back to 1963 and continues to this day with a shared engineering and manufacturing joint-venture which produces Mahindra-Navistar heavy trucks for the Indian market.

Mahindra has repeatedly been rumored to be searching for an appropriate assembly facility in America since 2008.  Mahindra stated in January of 2011 that despite their dismissal of former import partner, Global Vehicles USA, they were open to partnering with Navistar to find a suitable location for assembling Mahindra Pickups specifically for the US market.

US Manufacturing Justification
Assembling the compact diesel pickups in America from India-made parts allows Mahindra to avoid the 25% Chicken Tax imposed on complete vehicles imported to the United States.  This has been a key part of Mahindra’s strategy to offer their compact diesel pickup trucks at a low price in order to successfully enter the highly competitive US light truck market.  Assembling the TR20 and TR40 in a "right-to-work" state like Alabama also has the potential to keep manufacturing costs low.

Navistar’s involvement, and the location of the new facility close to existing plants will (in Navistar’s own words) allow them to “capture synergies and efficiencies given the close proximity to Navistar’s two engine plants in Huntsville.”

Mahindra and Global Vehicles Await Arbitration Verdict
Global Vehicles and Mahindra & Mahindra are still awaiting an arbitration decision which will determine the fate of their tumultuous relationship and indicate which company will ultimately control import and distribution of Mahindra vehicles in the United States.  Despite the lack of a rendered verdict, it appears that Mahindra is moving forward with US-assembled pickups and will be producing vehicles here no matter the arbitration outcome.

If Global Vehicles retains distribution control, they will continue to service the nearly 350 dealers which they have established franchises with nation-wide.  If Mahindra is granted control of distribution, they may be able to utilize Navistar’s distribution resources, establish their own relationship with the dealers already set up by Global Vehicles, utilize their tractor distribution through Mahindra USA, or a combination of all three.

EPA Certification
WardsAuto reported in September that Mahindra has not submitted a formal application to the Environmental Protection Agency for a 2012 model-year federal emissions certification as they had for the 2011 model-year back in late 2010.  Mahindra still has until the end of 2011 to file for a 2012 model-year certificate.  However, it is more likely that Mahindra will wait until the beginning of 2012 to file for a 2013 model-year certificate for pickups they intend to sell as 2013 models.  The EPA has not returned MP’s request for comment.

NHTSA
WardsAuto also reported that “Mahindra & Mahindra has identified itself to the National Highway Traffic Safety Administration as a vehicle manufacturer and submitted the necessary information to sell its vehicles in the US”.  Mahindra Planet confirmed with the NHTSA that although no additional paperwork has been filed recently by Mahindra, any manufacturer may begin moving forward with their business plans without approvals or submitting crash test data.

Return of the Scout?
Alabama Govenor, Robert Bentley has stated that the lease agreement with Navistar has the “potential to be one of the largest economic development projects in the United States and will transform northwest Alabama”.

While not necessarily the return of an International-branded light truck like the old International Scout, this move will make Navistar and Mahindra a player in the North American light truck market (remember that Navistar no longer has to abide by a non-compete agreement with Ford).  It could also be a stepping stone for the entry of Mahindra’s recently unveiled XUV500 which was arguably designed purposely for the US market and is experiencing great success in India.

Mahindra XUV500

US Jobs
To take full advantage of state tax incentives used to lure Navistar to the Alabama facility, Navistar must employ at least 1,800 workers by the end of 2015.  Local news reports have stated that Navistar intends to eventually employ 2,200 workers at the facility and fully optimize the manufacturing capabilities of the plant. 

Navistar’s Secret
Despite their promise of creating over 2,000 new US manufacturing jobs and the Alabama govenor’s comments about this being one of the largest economic development projects in the US, Navistar is being curiously tight-lipped about what will actually be made at the facility.  Since the arbitration decision has not yet been made (word is that that a decision may not be made until after the New Year begins), an official announcement on what will be produced there has still not been made.  There is a correlation here.

Mahindra Is Not Dead
Mahindra Planet is convinced that plans are indeed in place to manufacture Mahindra vehicles in the US in 2012.  We believe that American Mahindra fans have something to look forward to in 2012.  Stay tuned as we learn more.

Sources: As hyperlinked
Photos: Mahindra & Mahindra Ltd.

Mahindra to Lose EPA Approval in 2011

It’s hard to believe it was over a year ago that Mahindra finally announced that it had completed the physical requirements to obtain EPA certification.  Excitement was building and many fans were beginning to think that the arrival of the Mahindra diesel pickup was on the horizon.

Sadly, in the time that has passed, Mahindra purposely delayed completing the EPA paperwork filings, kicked its importer (Global Vehicles) to the curb, and the EPA released its Estimated New EPA MPG fuel economy ratingfor the USmodel Mahindra TR40 4x4 of only 21 mpg.

Mahindra appears to be on to bigger and better things (Ssangyong) with seemingly little regret and no remorse about abandoning their US market aspirations.

Now we close in on the end of 2011.  Mahindra will lose their 2011 model year EPA approval, and they have not filed for 2012 approval.  Mahindra and GV are currently in arbitration and a whole bunch of US dealers are left with sparse bank accounts and empty showrooms.

Well Mahindra, thanks for trying.  Maybe we we’ll see you again someday.

Source: Green Car Reports

US Dealer Starts Class Action Against GV, Mahindra

Developing story: A dealer signed on as a Mahindra pickup and SUV franchise has filed a federal class action lawsuit against both US based distributor Global Vehicles, and Indian automaker Mahindra & Mahindra Ltd over failure to supply promised vehicles to prospective dealers.

From the complaint:

"Despite promising to import Mahindra vehicles for sale to the public through plaintiffs and members of the class, neither Global nor Mahindra ever imported any vehicles into the United States for distribution through its network of franchise dealers,"

The suit claims that GV and Mahindra have taken USD $60 million from dealers in franchise fees.

More to come on this breaking story...

Source: Courthouse News

U.S. to see Ssangyong SUV’s in 2-5 Years



Ssangyong SUT 1 Concept via PickupTrucks.com/Jalopnik.com

 Ssangyong Motor Co. Chairman, Yoo Lee, has told Automotive News (via AutoWeek) that his company ultimately intends to sell its Korean-made SUV line in the United States “two to three years from now, but within five years at the latest.”
Lee foresees some struggles in complying with complex US homologation requirements stating “We will need time to fulfill all strict emission and safety regulations.” Clearly, Ssangyong understands the challenges (lessons learned from Mahindra) but intends to pursue the strategic US market.

Battle of the Brands
News of Ssangyong’s US ambitions still leaves Mahindra dealers and current/former Mahindra distributor, Global Vehicles USA (GV) in a vacuum.

Mahindra & Mahindra Ltd, wholly owns Ssangyong Motor. Ssangyong’s line of small SUV’s are primarily powered by 4-cylinder turbodiesel engines with a few gasoline-fueled options. It is likely that Ssangyong will want to focus on diesel engines for the United States.

Mahindra Dealers and Global Vehicles may be legitimately concerned that Mahindra’s Ssangyong takeover has created a loophole which would allow M&M to bypass GV and some 350 dealers who have committed to selling Mahindra-branded pickups and SUV’s powered by 4-cylinder turbodiesel engines.

Rendering of a Mahindra branded, Ssangyong Korando C via IAB

The Ssangyong brand name (or as PickupTrucks.com’s Mike Levine surmises, a newly created brand name) could be used on any Mahindra or Ssangyong built vehicles imported to the United States. Creating a new brand dedicated to the US market could potentially circumnavigate the ongoing legal battle between GV and M&M. This could allow Mahindra to establish its own import and distribution enterprise, and bypass the current Mahindra dealer network set up by GV. The dealers and GV are legitimately concerned that they could be left in the dust.

Conflict of Interest
There is little sense in Mahindra bringing competing diesel-powered brands and products to an already challenging and competitive market. Cherry-picking the best products from Mahindra and Ssangyong and rolling them into a unified brand may be more strategically sound.

Mahindra is extremely dedicated to the globalization of the Mahindra brand name and has established decent brand recognition in the US with their tractor and information technology divisions. On the flip side, the Mahindra small truck brand in the US has become a symbol of Mahindra’s inability to create a truly global automotive product and execute an enchanting business and marketing strategy in the United States. A new brand name may help bury these negative impressions.

Source: AutoWeek

Updated: GV Drops Lawsuit against Mahindra

Updated 24-Feb-2011: For the last few days the official North American Mahindra website operated by Global Vehicles USA, Inc. has been down.  When typing the url www.MahindraNA.com in your browser, an error is returned stating that the domain name does not exist.  Also note that the GV's corporate website, www.GV-USA.com is now "under construction". 

Mahindra posted an official statement on the dismissal of GV’s lawsuit last week. It confirms that the “arbitral tribunal in London issued an Award confirming that the tribunal has exclusive jurisdiction to resolve all disputes relating to Mahindra and Global Vehicles’ relationship, and it has directed Global Vehicles to stop all current litigation & not file any further litigation against Mahindra relating to the parties’ current dispute.”

Vehicle dealers and distributors are fairly well protected by US law from strong arm tactics or bullying by manufacturers under the Automobile Dealer’s Day in Court Act of 1956. By abandoning US litigation (at least for now), GV is kicking that blanket of protection off the bed. At this point, GV has consciously decided to commit all of their effort and confidence into the UK arbitration process.

Since a verdict isn’t expected until August of this year, expectant Mahindra fans have a long summer ahead to predict the results and debate what those results will mean for the way Mahindra vehicles will be distributed in the US. The good news is that this gives Mahindra time to perfect their products for an eventual US launch. The bad news is that established manufacturers appear to be on the brink of refreshing the small pickup market in the US.

As we have said many times before, the saga continues.

Revealed: The New Mahindra TR

Recent headlines have not given US Mahindra fans much encouragement lately: Mahindra’s Dismal EPA Fuel Economy, Global Vehicles Drops Lawsuit Against Mahindra, etc. Good ol’ MP is here to tell you it’s not all doom and gloom. Well, we don’t think so anyway…

We’ve alluded to this before on MahindraTruckForum.com, but MP believes that the much rumored the next generation Scorpio/Getaway/TR20/TR40 is very close to launch. The key to this? The Mahindra Genio:

"We are very keen on exporting this.. when we conceptualized this product, we were also looking at in exporting also...we are confident that it will drive the growth in the pickup segment...," - Senior Vice-President Sales and Customer Care, Mahindra & Mahindra, Arun Malhotra (at the Genio launch on 28-Jan-2011)

Why do we believe that the Genio is the basis for an all new TR? The numbers don’t lie:

                         Mahindra Genio Single 4x2   Mahindra TR20 4x2
GVWR              6,460 lb                                   6,945 lb
Curb Weight     3,704 lb                                    4,180 lb
Payload             2,756 lb/1.38 ton                     2,785 lb/1.39 ton
Width                72.4 in                                      69.7 in
Length              207.6 in                                     206.0 in
Height               73.6 in                                       71.8 in

“From this year to the end of March 2012, there will be a slew of products launched across passenger and commercial vehicles segments. There will be about 8-10 substantial new products, including variants and refreshes, launched during the period.” – President Automotive and Farm Sector, Mahindra & Mahindra, Pawan Goenka

The Genio (internally called U202) is built on the Mahindra Ingenio chassis launched in 2009 for the domestic market Xylo multi-purpose vehicle (basically what we would call a 7-passenger van, think Ford E-Series). The Ingenio chassis was designed to replace the current Scorpio chassis which sits underneath most of Mahindra’s light trucks built since 2002 (Scorpio, Bolero, and Thar). The obvious intent was to create a modern chassis with greater configuration flexibility which could carry a variety of powertrain options, wheelbases, and overall lengths.

A Genio-based next generation TR means that the US would get Mahindra’s latest and greatest chassis design. A chassis that was designed to carry diesel or diesel-hybrid powertrains (maybe even all-electric via Reva) and it was designed for 4WD or AWD drivetrains.

Replace the Genio’s utility bed with an integrated conventional pickup truck box and you have a new pickup with a distinctly more modern feel than the current TR (goodbye drip rails and 90’s Toyota rip-off styling). Is it pretty? Meh. Is it better styled than the TR? Maybe. But then the TR styling has grown on us over the last 3 years. It certainly is more modern and appears to be much higher quality inside and out.

Going back to our comparison of Genio versus TR20 specifications, the Genio weighs nearly 500 pounds less than the TR20 but still hauls a 1.3 ton payload. Combine that 500 pound diet with a more aerodynamic cab and suddenly 30 mpg becomes a more attainable reality once again. Could this be what John Perez is talking about?

Of course this is all Mahindra Planet’s famous speculation. But when things begin to add up, shards of reality begin to emerge. It could also just be wishful thinking…

Source: Economic Times, IndianAutosBlog.com, as hyperlinked

GV Drops Lawsuit Against Mahindra, Will Focus on Arbitration

Autoblog reports (via Automotive News) this morning that US Mahindra pickup distribution partner, Global Vehicles USA, Inc (GV) has withdrawn their US lawsuit against Mahindra & Mahindra Ltd over failure to provide TR20 and TR40 diesel-powered, compact pickups for US sales.

Apparently the lawsuit was dropped because the UK-based arbitration panel refused to rule on the case while an active lawsuit continues in the US. It remains to be seen how much more weight an arbitration ruling in favor of GV in the UK will carry over a win in US courts.

GV CEO, John Perez, is also claiming that the EPA data published last week does not reflect the 30 mpg figures that GV estimates the 2-wheel-drive TR20 pickups will achieve. It is unclear why the EPA only published data for the 4x4 TR40 pickup and not the supposed economy champ, 4x2 TR20. A 40% difference in fuel consumption between the two models seems like an incredible feat, but then it was GV who coordinated all of the US test vehicles and has first hand experience with Mahindra pickups on US roads.

Source: Autoblog

Disappointing EPA Fuel Economy Data for Mahindra TR40 Released

Updated 07-FEB-2011 - Andy from MahindraTruckForum.com has posted an official response from Global Vehicles on the EPA results: "Global Vehicles has seen the EPA results for the Mahindra TR40, 4WD, automatic pickup truck posted on their website, the results are different than expected but our expectations from promises made by Mahindra has always been 29 to 30 miles per gallon for a 2WD truck, and somewhat lower for a 4WD, we have sent a message to Mahindra for further explanation and will forward as soon as we receive the answer."

 The EPA has released its Estimated New EPA MPG fuel economy rating for the US model Mahindra TR40 pickup. The EPA rates the 2011 TR40 (4-door) pickup, 4-cylinder diesel, with 4-wheel-drive and automatic transmission at 19 mpg/city and 21 mpg/highway.

For comparison, a 2011 Toyota Tacoma, V-6 gasoline, with 4-wheel-drive and automatic transmission is rated at 16 mpg/city and 20 mpg/highway.

The data is of little consequence with the continued absence of the Indian made trucks on US soil. Whether or not this data had an affect on Mahindra’s dismissal of US distributor, Global Vehicles USA remains to be seen. However, it is possible that competitive analysis of fuel economy figures for other US market pickups was also a consideration. At this time, the Mahindra North America website maintained by Global Vehicles still claims a highway rating of 30 mpg.

Thanks to ArmyStrong on MahindraTruckForum.com for the tip!

Source: http://www.fueleconomy.gov/

Mahindra-Ssangyong Mashup Taking Shape

The first physical evidence of the possible re-branding of Ssangyong products as Mahindras has been captured. A Ssangyong Rexton with Mahindra Scorpio style tail lights was spotted in India.


Shrawan Raja and IndianAutosBlog.com are on top of things as usual. Two weeks ago they showed a rendered photo of a Ssangyong Korando C with a Mahindra-esque grill. This week they have grabbed news of the Xylo pickup launch and now photos of a Rexton with Scorpio details.

This leaves MP to ask: When Mahindra finally sends some vehicles over to the US, will they be sporting Ssangyong or Mahindra logos?

Source: http://www.indianautosblog.com/

Mahindra Makes the Top Ten

Probably not the Top Ten list Mahindra hoped to be on, but the epic tragedy that the Mahindra story has become in the US certainly garnered a lot of press in 2010. PickupTrucks.com ranked the Mahindra launch failure as their Number 1 news story of 2010. Note to Mahindra: This is not a good thing.

Top 10 Pickup Truck New Stories of 2010: No. 1: Mahindra’s Compact Diesel Pickup Truck Implodes Before Launch

Farewell 2010 and hope for a brighter 2011 for the Mahindra pickup.

Source: http://www.pickuptrucks.com/

US Mahindra-Navistar Alliance: A Possibility

Hope is fading fast for a timely resolution to the battle for distribution rights to sell the first Indian made pickup trucks in America.
Over the last six months, Americans anticipating the launch of Mahindra’s TR20 and TR40 diesel pickups have instead witnessed a war of words played out in US courts, UK arbitration, and scalding press releases. The conflict between US based distributor, Global Vehicles USA (GV), and Indian industrial conglomerate and automaker, Mahindra & Mahindra Ltd (Mahindra), has played out like an epic Hollywood divorce.

The occasional glimmer of hope that Mahindra and GV could resolve their differences and bring TR pickups to market have regularly led to solemn disappointment for hopeful customers. The resulting rollercoaster ride has left some potential buyers barfing at the exit and others running to get back in line for another ride.

Recent statements by Pawan Goenka, automotive sector president of Mahindra & Mahindra, pours more fuel on the fire:

"There is always the possibility of having an alliance with Navistar in the US as we have an alliance with them in India already, but nothing has been finalized yet,”

Sentiment in the Indian press indicates that Mahindra does not have any interest in continuing it’s partnership with GV no matter how the legal battle ends. Mahindra officials refuse to comment on the lawsuit, and little word has made its way out of GV’s Alpharetta, Georgia headquarters in months.

Although Mahindra seems bent on bypassing the company who laid much of the groundwork for their US automobile entry (GV), they have consistently stated that they see the US as a key strategic market for their brand. Judging by their acquisition of Korean automaker, Ssangyong Motor, and the development of more worldly vehicles like the W201 SUV, Mahindra is on track for launching US products… some day.

Source: Business Standard

Mahindra to Launch All-New Pickup in 2011

“We are working on a lot of models. There will be a pick up on a completely new platform,” said Arun Malhotra, senior vice-president (sales and customer care, Mahindra & Mahindra). “We plan to bring it in the second of 2011. It will be positioned near the top-end of our commercial vehicle pickup range, with a payload capability of above 1 tonne.”

Livemint.com confirms that Mahindra plans to launch an new 1.2 ton capacity pickup truck in the second quarter of 2011 for the Indian domestic market.  The description of the new pickup leads Mahindra Planet to believe that this is the pickup version of the much rumored second generation Scorpio SUV.

The latest information confirms that this is indeed a separate model and launch from the anticipated W201 'World SUV'.  The load capacity of the new truck is nearly identical to that of the current generation Scorpio-based Getaway/TR20/TR40 pickups whose launch has been delayed in the United States several times over the last 2 years.

While it is still unclear how or when Mahindra will resolve it's ongoing dispute with it's US import and distribution partner, Global Vehicles USA, it is clear that they have an all new pickup nearly ready for production.  One can assume that Mahindra's global sales aspirations have led them to develop the new pickup for multiple markets including the US.

As details of the new pickup emerge, Mahindra Planet will get it posted up as we get it.

Source: Livemint.com

Breaking: Mahindra Kills Deal to Build Reva Electric Cars in US

A short while ago, Syracuse.com published then retracted a story providing details of US-based company, Bannon Automotive LLC, filing a lawsuit on Monday against Mahindra Reva Electric Vehicle Co. and it's parent company, Mahindra & Mahindra Ltd (M&M).

Bannon Automotive (of Long Island, NY) has been working directly with Reva, the state of New York, and Onondaga County since late 2009 to establish a vehicle assembly plant in the Syracuse, New York area.  The facility was to build US-market Reva electric cars from India-made parts kits, but it appears that those plans are on now hold indefinitely.

Reasons for the collapse of the Bannon/Reva deal read like a page straight out of Mahindra's dealings with their US truck importer and partner, Global Vehicles USA (GV).  In June, GV filed a lawsuit against M&M claiming that they were purposely delaying EPA certification efforts to prepare a compact diesel pickup truck for launch in the US market.  The lawsuit also asserted that Mahindra was effectively attempting to force an end to the exclusive import and distribution contract both companies had originally negotiated in 2006.  It has been widely speculated that Mahindra decided that they were no longer interested in using a US partner to distribute the pickups, and were attempting to negotiate directly with dealerships established by GV.

Bannon Automotive's lawsuit accuses Mahindra of breaking agreements to give Bannon an exclusive license to assemble and sell Reva cars in the United States.

From the Syracuse.com article:

"This material change in the representations made by Reva and Mahindra signaled the death of Bannon Automotive", Bannon said in the lawsuit filed in Nassau County, where Bannon is based.

"Unfortunately, Mahindra/Reva did not deliver as promised," Bannon Chief Fiscal Officer Jordan Levy told the Post-Standard (Syracuse.com) by email Wednesday.  "Accordingly, Bannon and its investors have been compelled to take legal action.  Bannon will continue try and follow through with the project as planned.  We remain committed to bringing an affordable, US manufactured electric vehicle to the American marketplace."

The lawsuit seeks to force Reva to give Bannon a license to make the Reva vehicle for the US market and to bar Reva from granting a license to anyone other than Bannon to manufacture and market Reva cars in the United States.

Apparently Mahindra has been using the same playbook to coordinate their strategies with Bannon and GV.  Bannon goes on to state that Mahindra had repeatedly delayed signing a definitive licensing agreement after their majority stake takeover of Reva in May.  Bannon claims that Mahindra told them via email in August that they would not have a vehicle ready for them to sell in the US.  Bannon claims that the August email was the last communication they have received from Mahindra.

Mahindra Planet will continue to follow the story.  Please go to Syracuse.com for more.
Updated 7:15AM 23-Dec-2010: The Syracuse.com link is now live again: Electric Car Project for Onondaga County Collapses

Source: http://www.syracuse.com/

Opinion: The Real Reason for Mahindra’s Failure to Launch

Driven home by the official acquisition of Ssangyong this week, my personal feelings on why Mahindra is jacking around on the whole US launch deal revolves around demand in the Indian domestic market and emerging markets at large. Why? Because that is where the money is.

Emerging Markets
Demand in the Indian market started to steadily increase late in 2009. Manufacturers and suppliers started scrambling to keep up last fall. Demand has continued to rise significantly since.

Chew on this for a moment: Which exploding markets are most of the US, Asian, and European auto manufacturers trying to gain a foothold in? India, China, Eastern Europe, and the former Soviet states. Many of these markets are set to grow massively for the next several decades as their citizenry gravitate towards the middle class. This is where the money is to be made. Mahindra knows this, and they don’t want to lose any business to foreign brands coming into India if they can help it. Conversely, they definitely want to gain ground in these other evolving countries. This is a major reason why Mahindra bought Ssangyong Motor. Ssangyong’s biggest markets are Russia and Europe. Mahindra now has access to a bunch of Ssangyong’s technology, R&D, and manufacturing facilities, but more importantly they bought themselves an established brand that has some 1,300 dealers in 98 countries of these key markets.

Not to take anything away from any of these other countries or Mahindra themselves, but some of them probably have a slightly different expectation of quality, features, appearance, purpose, etc. in a vehicle. Mahindra, and particularly Ssangyong products, will be perceived differently elsewhere than they are by spoiled American car shoppers.

Worth the Effort?
So why bust your balls passing all of our stringent emissions certifications and safety requirements, and then be forced to pay the 25% chicken tax on every vehicle sold, plus a percentage to Global Vehicles USA (GV), only to potentially sell 30,000 vehicles a year in a crowded and competitive market?

I think that 5 or 6 years ago Mahindra saw the US as THE market to be in for two reasons: 1-the status of claiming to be the first Indian-built/Indian brand in the US. 2-their ego and arrogance led them to believe that the US would be a piece of cake to enter.

Once the reality of the global recession kicked in, the world started looking a lot different. Suddenly the US dollar was worth crap, and traditional auto markets (particularly the US) dried up. Emerging markets have started looking pretty good with a low cost of entry and less competition.

The US is just not the same priority for Mahindra that it was a few years ago. They have been slowly going through the motions, but it’s pretty obvious that Mahindra was hoping to either kill GV financially, or otherwise dissolve the contract with minimal financial loss in order to regroup and attack the US market when it makes better sense.

GV has attempted to order trucks several times. Mahindra claimed each time that GV did not have the finances in place to support the order. In my opinion, those truck orders were rejected purely because Mahindra never intended to build US versions at the time. Since they received federal approvals in August of this year, there has been nothing to hold Mahindra back from building trucks for the US market. If Mahindra honestly didn’t think GV had the financials in place to back up the orders they placed, then why the hell wouldn’t they back it themselves just to get the ball rolling? Especially since Mahindra so confident about their success in the US market.

Whether they like it or not, in the US, Mahindra has a legal obligation to satisfy GV and the dealers they represent. The US has many laws in place to protect dealers (GV is also technically a dealer) from unfair practices by manufacturers. Mahindra can fight this and probably buy themselves some time, but the odds are against them (in the US at least). Eventually Mahindra will have to make good with either compensation or product as promised (or re-negotiated).

US Outlook is Still Positive
Mixed in with the headlining news of the Ssangyong acquisition, there is positive speculation that completing this deal will open the door to a revitalized effort to enter the US market.

Mahindra is already making plans to quickly introduce new models as a result of the takeover as early as next year. Mahindra instantly becomes a much larger global player, and has more development and technology resources. Reports are claiming that Mahindra has the cash on hand to complete the Ssangyong deal, and even Ssangyong has been making money this year. It may not be too much to expect that the US target will now loom much larger in Mahindra’s sights. Let’s hope so.

GV Press Release: GV to Protect 8,300 Potential US Jobs

This just in from US Mahindra truck importer, Global Vehicles USA:

Global Vehicles Takes Steps to Protect 8,300 Potential U.S. Jobs


ALPHARETTA, Ga., Nov. 11, 2010 /PRNewswire/ -- Global Vehicles USA, Inc., announced today that it will be taking new steps to protect more than 8,300 potential U.S. jobs associated with the launch of Mahindra pickup trucks in the United States, including requesting that the states of Florida and Georgia hold administrative hearings to determine whether Mumbai, India-based Mahindra & Mahindra and its local employees are violating state motor vehicle franchise laws.

Global Vehicles has been the exclusive U.S. distributor of Mahindra vehicles since 2006, and the company has recruited a network of 347 dealers who are prepared to sell Mahindra pickups immediately, now that they have passed federal certification tests.

Mahindra threw the launch plans into disarray this summer by attempting to arbitrarily remove Global Vehicles as its distributor, and by suggesting through a spokesman that it may do business in the future with some dealers but not all of them.

Earlier this year, Mahindra said the launch was on-track for late 2010. Now the company refuses to commit to a launch date.

"We are ready to sell trucks, and that remains our goal," said John Perez, CEO of Global Vehicles. "By our calculation, Mahindra's delays and disruptions are putting more than 8,300 potential jobs at risk at our dealers, at the ports, in the trucking industry and throughout the supply base."

According to Perez, these figures count only the employment associated with the launch phase. The long-term jobs outlook is even greater because the U.S. economy is recovering, and consumers want a 30-mile-per-gallon compact truck that can haul as much as a heavy-duty pickup.

"Global Vehicle's dealers are experienced and well capitalized, and have access to more than $1 billion in credit facilities to support their facilities, order vehicles and deliver outstanding customer service," Perez said. "We believe first-year sales could reach 30,000 units, worth $750 million."

Global Vehicles has asked the Georgia Department of Revenue and the Florida Department of Safety and Motor Vehicles for hearings to determine whether Mahindra is violating state franchise laws by acting in bad faith with Global Vehicles and its dealers, who together have invested more than $100 million to bring Mahindra trucks to the United States.

Global Vehicles also has invoked the arbitration clause in its contract with Mahindra, and sued Mahindra in United States District Court for the Northern District of Georgia, Atlanta Division, to protect its contractual rights. Both cases are pending.

Global Vehicles U.S.A., Inc., based in Alpharetta, Ga., is the exclusive importer and distributor in the United States of motor vehicles produced by the automotive arm of the Mahindra Group (www.mahindra.com), a $6 billion-plus diverse conglomerate.

SOURCE Global Vehicles USA, Inc

W201: The Card Hidden Up Mahindra’s Sleeve

Rumors and renderings of Mahindra’s all-new “world SUV”, codenamed W201, have floated to the surface time and again throughout 2010. Educated guesses, eye-witness accounts, and complete speculation give us a decent overall understanding of the unnamed SUV/crossover despite Mahindra’s official policy to not comment on rumors about new or upcoming models (apparently they employ a similar policy regarding timelines and vehicles destined for the US market, but that is another story). As the rumored 2011 launch (2012 for US?) of the W201 approaches, here are some updates and further speculation served up for your reading pleasure:


Originally thought to be an upgraded replacement for the Scorpio SUV (the body-on-frame sibling of the US-bound Mahindra TR20 and TR40 small diesel pickups), it’s become clear that the larger W201 crossover will be a far more luxurious step above the relatively primitive (by US standards) Scorpio/TR.

The W201 is clearly a project intended to not only extend Mahindra’s global vehicle market reach, but to also stretch Mahindra’s design, engineering, and production expertise. With its unitized construction and apparently transverse engine layout, the W201 represents a significant departure from the last forty years Mahindra has spent slowly evolving the basic body-on-frame construction of the first Jeeps they were licensed to build in India. The last significant technological leap for Mahindra since adding a diesel tractor engine to the Jeep in the 1970’s, was the design of the current Scorpio platform in 2002. It’s obviously time for Mahindra to take their game to a new level.

It’s likely that Mahindra’s familiar longitudinal engine layout with a conventional transmission and part time 4WD transfer case will be dumped in favor of a more compact transverse engine layout favoring a front-wheel-drive/all-wheel-drive configuration for the W201. Mahindra is currently in the process of taking over bankrupt South Korean car maker, Ssangyong Motor. This acquisition should give Mahindra access to further expertise in unitized body design and manufacturing, as well as access to Ssangyong’s gasoline and diesel engine designs. Combine this with Mahindra’s recent acquisition of pure-electric car manufacturer, Reva, and a variety of gasoline, diesel, electric, or hybrid powertrains may eventually be offered in the W201.

In the spirit of Mahindra’s cloak and dagger operations involving the W201, heavily disguised test mules have been spotted several times on Indian roads. Sharp-eyed car guys including our friends at Indian Autos Blog have taken photos of the pre-production SUV, and artists have rendered images of what the undisguised SUV may look like. Photos and renderings reveal the W201’s exterior styling to be somewhere between a Nissan Murano and a Pathfinder which was left in the oven too long. It may not be beautiful, but all around it’s a much more modern look than that of the TR20 and TR40 which seem to pay homage to Japanese pickups of the 1970’s and 1980’s.

Some lucky civilians have gotten up close to the mules and at least one has even had some limited drive time in the W201. The interior has been described as a giant leap forward for Mahindra, but still not likely up to the high expectations of American consumers. Certainly this is something which could be fixed before production begins. Witnesses state that the W201 is loaded safety features commonly found on US-market vehicles such as a complement of air bags, traction control, and stability control. Mules have been observed with 6-speed manual transmissions, but it’s a given that automatic versions are a must for US sales of this type of vehicle.

To continue roasting the same old US launch delay chestnut, it remains to be seen where the W201 fits in with Mahindra’s master plan (or lack of plan) to launch the current generation TR20 and TR40 pickups in the US. The W201 is almost on a different planet than the rough around the edges Scorpio-based pickups. Adding fuel to the fire of controversy is Mahindra’s development of a next generation Scorpio platform also due to launch in 2011. Time will tell what their plan is for sure. In the mean time, we’ll keep on speculating.

Source: IndianAutosBlog, Team BHP, BurnYourFuel

Mahindra Delay Excuses Don't Set Well With Importer

Mahindra importer, Global Vehicles USA (GV), has quickly responded to Mahindra’s statements that the US launch of their India-built line of compact diesel pickup trucks has been delayed indefinitely due to ongoing conflict with the Georgia-based company.


“Mahindra is legally – and morally – obligated to conduct business as usual” – John Perez, CEO, Global Vehicles

Perez refers to an arbitration clause which was part of the original contract between Global Vehicles and Mahindra & Mahindra Ltd to establish GV as the exclusive distributor of Mahindra vehicles in the United States. The contract between the two parties expired on June 11, 2010. On that same day, GV invoked an arbitration clause placed in the distributor agreement. That clause requires both companies to conduct ‘business as usual’ in order to fulfill their commitment in supplying Mahindra pickups to nearly 350 dealers which have been waiting over 2 years for products to sell.

While engaged in a federal lawsuit filed against them by GV and the binding arbitration process being conducted in the UK, Mahindra continues to publicly dismiss GV as exclusive distributor of their vehicles, and now are blaming further delays on these actions.

"Any suggestion that the arbitration process or the federal lawsuit we were forced to file to protect our rights are responsible for the delay in bringing trucks to the United States is patently not true. If Mahindra's trucks are ready to sell, they should continue performing their obligations under the distributor agreement just like we have. If dealers start to doubt Mahindra's integrity, they don't stand a chance of earning the trust of American consumers." – John Perez

Source: Global Vehicles via PRNewsWire

December Mahindra Launch Date Is Now “No Date”

PickupTrucks.com is reporting this morning via AP reports that Mahindra is no longer stating that a thrice delayed US launch date of December 2010 is expected for their India-made small diesel pickup trucks.


Mahindra & Mahindra Ltd’s vice chairman and managing director, Anand Mahindra, told an interviewer that “we’re still interested in getting into the US”. However, he went on to say that “we don’t want to turn this into a war of words” regarding a very public legal and PR battle over distribution of the pickups with US importer Global Vehicles USA (GV).

GV has maintained that they intend to move forward with introducing and launching the vehicles in US despite Mahindra’s continued statements that they have terminated their contract with GV and no longer regard them as a business partner. GV went so far as to officially place an order for $35 million of TR20 and TR40 pickups with Mahindra on September 24th only to have it rejected a few days later.

The Mahindra soap opera continues.
Source: PickupTrucks.com