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 Reva Settles US Lawsuit: Reva Dead in New York, Alive in Alabama?

Syracuse.com reported yesterday that Mahindra & Mahindra Ltd settled it's lawsuit with US-based Bannon Automotive back in August of 2011.  As reported a little over a year ago, Bannon Automotive filed a lawsuit against Mahindra claiming that they reneged on an agreement to deliver knock-down kits of it's Mahindra Reva electric cars to Bannon for assembly in an Upstate New York assembly plant.  The lawsuit has been settled without comment from either party and conditions of the agreement are unknown.

Mahindra is claiming that they will not be building Mahindra pickup trucks in the United States in partnership with Navistar in Alabama as Mahindra Planet broke news last month.  Could it be that Mahindra plans to build Mahindra Reva electric cars there instead?  Or could Mahindra be planning to build both Mahindra and Mahindra Reva vehicles at the mysterious Alabama facility?  Stay tuned.

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.

Best of Mahindra Planet: Roasting The Old Scout Chestnut

We’ve dug back into the dark and musty MP archives again (located deep inside a western Kentucky cave under ancient Native American burial grounds for safe keeping) and returned to the surface with a couple of popular jewels for all to admire once again.

Mahindra Planet has beaten the old Mahindra-Navistar (International Trucks) horse to death and back several times in the last three years.  So why not give it another smack and read our prediction/dream of a modern incarnation of the classic International Scout pickups and SUVs.  The connection between these two companies is still deep, so why not continue to conjecture:

From 2008: MahindraPlanet Predicts Springfield, OhioAssembly for Mahindra Trucks

 

Is this the next International Scout?

If neither of these articles satisfies your neo-retro truck nostalgia, make sure you keep up with Icon 4x4.  Not only have they been continuing to build their incredible Icon CJ3B and Icon FJ series trucks, they have also teamed up with famous designer Camilo Pardo (Ford GT designer) to create a new Icon Bronco based on the classic first generation Ford Bronco design:  Icon 4x4

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 Buys Majority Stake in Reva Electric Car

As Mahindra Planet reported in April, Mahindra has been rumored to be in negotiations with Indian/American electric vehicle manufacturer, Reva Electric Car Co. Ltd., to take over majority stake in the company. Reports this morning confirm that Mahindra now owns 55.2% of Reva. The new company will be renamed Mahindra Reva Electric Vehicle Co.


Reva, through its US importer Bannon Automotive, has been working for the past several months to establish an electric car manufacturing site in the Syracuse, New York area. Plans for the Central New York manufacturing facility have been steadily moving forward since recently acquiring federal, state, and local grants for the project.

Mahindra plans to initially invest USD $9.5 million into the new Reva venture.

"Our association with Reva will only help us further expand our green footprint both in India and overseas." Anand Mahindra, Vice Chairman, Managing Director, Mahindra Group (@AnandMahindra on Twitter)

Mahindra & Mahindra wants to be seen as a global leader in green automotive technology. Mahindra will be introducing the first Indian made pickup trucks (the Mahindra TR20 and TR40) to the United States in December of this year. The Mahindra pickups will only be available with clean diesel engines and are anticipated to attain 30mpg while prices start at USD $22,000.

The first Mahindra pickups sold in the US will be entirely manufactured in India. However, Mahindra has been actively looking for a suitable US facility to assemble pickups and other vehicles in order to avoid the 25% “chicken tax” imposed on foreign made vehicles imported to the United States.

The Mahindra Reva facility in Central New York could provide Mahindra with some positive insight into the manufacturing prowess, technology community, and skilled workforce that the Syracuse area offers. Maybe Mahindra will even consider building clean technology pickups and SUVs in CNY as well.

Source: AP via Syracuse.com

Mahindra Launch: Getting It Right

“It’s more important to get the launch right the first time rather than get hung up on a date. The launch in the U.S.A is a very significant step. It will give us only one chance.” – Pawan Goenka, President Automotive Sector, Mahindra & Mahindra


Nick Kurczewski interviewed Goenka last week for The New York Times. Although Goenka is still very non committal in his statements, he is “fairly confident” that the December launch date will happen. However, he does stress that the approach to the US market is far more important than the actual timing.

Kurczewski did confirm once again with Mahindra and US importer, Global Vehicles, that all EPA and crash tests are complete. All government approvals should be in place by the end of June, and production of the US-bound TR20 and TR40 pickups should begin in September of this year. This is a lot of “should”.

According to Goenka, Mahindra expects that the US market to grow again in 2011. This positive outlook is paired with Mahindra’s expectations of gaining 5-7% of the US market share with their compact diesel pickups. Mahindra still plans to introduce the Scorpio SUV (which shares it’s chassis with the TR20 and TR40) later in the year, and will eventually launch an all-new global luxury SUV currently code named W201 in the US.

Pricing for the TR20 and TR40 has still not been set. Goenka tells Kurczewski that a final retail price will not be established until the day before the trucks are launched. Curiously, this sounds as though dealers may not even know how much the trucks are going to sell for until after they actually have them on their lots.

Although this information does little to placate torch-carrying US Mahindra fans, an additional positive piece of news from the article is that Mahindra is actively working to establish a US assembly facility. Goenka indicates that Mahindra hopes to begin assembling vehicles in the United States six to eight months after sales begin.

The entire NYT article is HERE

Source: The New York Times

Mahindra: Exporting Pickups to US by Mid-2010

Update: I have been made aware that the Wheels Unplugged article referenced in this post may contain altered quotes on US arrival times from PN Shah. I have removed this quote. The rest of the article recycles previous quotes and information.  Nothing new here.  I apologize to my readers.

Wheels Unplugged reports this morning:

“We are fully ready with the product (customized for the US market) and even the US manufacturing facility (in India). We are waiting for some regulatory approvals to launch the Scorpio in the US in this quarter” – Pawan Goenka, president, Automotive Sector, Mahindra & Mahindra

Iowa-based dealer, D&D Mahindra, confirmed Tuesday on Mahindra Truck Forum that they were told that Mahindra’s US test fleet (25 pickups) have not completed enough test miles to meet the EPA data requirements. The vehicles currently in testing have on average, 70,000 miles, and require 100,000 miles on the clocks before final data may be submitted and approval given.

Wheels Unplugged also reaffirms this morning that Mahindra has no immediate plans to assemble TR20 and TR40 pickups in the United States. Previous reports have also been clear that Mahindra will test the US-market waters before committing to US assembly, but they have been looking for suitable facilities.

Mahindra Inaugurates Chakan Facility, Will Produce US Trucks

Saturday, (March 13, 2010) Mahindra opened the doors to their recently upgraded Chakan facility in India. Mahindra Planet reported in January that this facility was receiving USD $1 billion in capital improvements. Of that $1 billion, $150 million is to be dedicated to the next generation Scorpio SUV platform. The new Scorpio will be of unitized construction and has been designated for US launch in late 2010.

The new and improved facility will produce a wide range of vehicles from the ¾ ton Maxximo mini trucks to heavy duty Mahindra-Navistar trucks, in addition to US-bound vehicles.

“We will manufacture all new products here, including the range that will be exported to the US.” – Pawan Goenka, President, Automotive Sector, Mahindra & Mahindra

The future for US built Mahindra vehicles still remains unclear at this point, but it does appear that at least the new Scorpio will be built in India and exported for sale in the United States.

Sources: Mahindra Navistar’s Blog and WSJ

City of Chatham, Ontario Pursuing Mahindra TR20/TR40 Production

The Chatham Daily News posted an article yesterday regarding efforts being made by the Canadian city of Chatham to influence Mahindra and Mahindra into producing light trucks in the province of Ontario.

The plant, which built Navistar’s International brand heavy trucks, was idled in July of 2009 after failed negotiations with the Canadian Auto Workers union.

The article states that the city mayor, Randy Hope, has been attempting to contact decision makers at Mahindra in hopes of bringing the plant back to life.

The complete article is here: New Hope for Idled Truck Plant?
Background on the Chatham plant is here: Navistar Lays Off 1000 at Ontario Plant

From 2008: MahindraPlanet Predicts Springfield, Ohio Assembly for Mahindra Trucks

In October of 2008, MahindraPlanet theorized that Mahindra’s connections with Navistar, International Truck and Engine Corporation, could easily lead to an assembly or manufacturing partnership on American soil. Pawan Goenka’s comments last week that Navistar facilities will be the first considered for US truck assembly confirmed the possibility of this prediction.

The post takes the manufacturing prediction one step further, and dreams of a reinvented, modern interpretation of the International Scout based on the Mahindra TR chassis and powertrain. With International’s light truck non-compete agreement with Ford likely null and void, the door is open for a line of pickups and SUV’s with International branding to ride the currently popular retro-styling wave.

Click here to read: Is This the Next International Scout?

Scout Images: http://www.adclassix.com/ and http://www.dieselpowermag.com/

Mahindra to Launch TR20 & TR40 in March and Deliver in April, US Assembly in Future

The Wall Street Journal reports this morning that Mahindra will first consider Navistar (International Truck and Engine Corporation) facilities first when they begin looking for an assembly location in the United States. A decision on a plant location will be considered around December of 2010, according to Mahindra & Mahindra President, Automotive Sector, Pawan Goenka.

Goenka goes on to say that Mahindra plans to launch the TR20 and TR40 pickups in March of 2010, with vehicle deliveries to start in the April-June quarter.

US vehicle manufacturing will be done on a contract basis with minimal investment in US-based infrastructure for Mahindra. Goenka also mentions that the new SUV platform being developed will be positioned above the current Scorpio model. No timelines are given for US arrival of SUV models.

To read the complete article, go to: Mahindra May Use Navistar Plant to Make Scorpio Pickup

Source: WSJ

Mahindra Scorpio Platform Replacement Moving Forward

The Economic Times reports that Mahindra & Mahindra’s plans for an all-new global SUV platform to be built in India, and marketed internationally is moving forward.

“We are developing a new SUV platform, which will replace Scorpio. This platform will be compatible with the markets abroad and will be exported from India.” - Mahindra & Mahindra President, Automotive Sector, Pawan Goenka

Mahindra plans to invest upwards of USD $150 million into the project. This is part of a total investment of USD $1 billion in capital expenditures for Mahindra’s Chakan plant.

The Scorpio platform is the common chassis used for the (soon-to-be) US-market TR20 and TR40 pickups, as well as the current Scorpio SUV marketed elsewhere. The article does not indicate whether or not future plans include some level of vehicle assembly in the United States.

The article in its entirety: Mahindra Plans Scorpio Successor

Source: The Economic Times

Mahindra USA Gets New Assembly Facility

Mahindra USA (i.e. the tractor side of Mahindra’s operations in the US) has announced the consolidation of their Texas operations and the relocation of their assembly and distribution point from Georgia to Chattanooga, Tennessee.

It’s unlikely that this activity has much to do with Mahindra’s light truck operations in the US. However, Mahindra now has a tractor assembly facility available in Georgia, maybe Mahindra truck assembly could fit right in…

The press release may be found: Here

Source: Business Wire

Mahindra: Exploring All Options to Manufacture Pickup Trucks in the US

A Wall Street Journal interview posted Friday morning with Mahindra & Mahindra Ltd. Vice Chairman and Managing Director, Anand Mahindra indicates that Mahindra is actively seeking options to build Mahindra vehicles in the United States.

Mahindra states that he is aware of the “great amount of capability and capacity available” to manufacture vehicles in the US. Mahindra goes on the explain that there are no firm plans yet, but options include buying or leasing an existing plant, or building a new facility. He also states that Mahindra does not plan to enter a joint venture for US expansion, quelling any rumors of partnering with Navistar/International or other manufacturers for production on US soil.

The interview also discusses Mahindra's burgeoning tractor sales in China and Africa despite the global economic downturn, and how US and European sales have begun to stabilize. The article in its entirety can be found: Here

Source: WSJ

Good News: Mahindra Resumes Search for US Pickup and SUV Manufacturing Plant

A Tweet from @PickupTrucks (www.pickuptrucks.com) early this morning alerted MahindraPlanet to news that Pravin Shah, executive vice president of international operations for Mahindra & Mahindra, told journalists in India that Mahindra is considering purchasing a manufacturing facility in the United States for vehicles based on the Scorpio platform. The Scorpio platform is the chassis that the TR20, TR40, and Mahindra Scorpio SUV are all based on.

Mahindra’s original plan for the TR20 and TR40 pickup was to manufacture parts and sub-assemblies in India, then complete final assembly on US soil. In February, those plans were then scrapped for unknown reasons. Shah’s recent comments make a clear statement that Mahindra intends for the United States to be their largest export market, and Mahindra wishes to manufacture product for the US market, in the US market.

Source: PickupTrucks.com

Mahindra to Initially Build Trucks for US in India

Mahindra’s recent decision to delay assembly of the US market pickup truck at a facility in Ohio is certainly a disappointment. It’s easy to understand their decision on several levels. Instability in the US economy being a primary concern, in addition to avoiding any launch delays due to issues with logistics or assembly.

On the other side of that, it seems as though Mahindra would want to do whatever they could to avoid the 25% Chicken Tax the US government will place on every truck made in India and brought here for sale. This also appears as somewhat of a cop out in committing to planting manufacturing infrastructure in US soil. Mahindra has spent considerable time, money, and effort establishing well over 300 dealerships in the US, and ensuring that the trucks will meet all federal requirements for emissions and roadworthiness, as well as extensive customer research.

Mahindra is claiming that the additional tax levied against each truck reaching these shores will not be added to the sales price. It is unclear whether they intend to eat this tax themselves or pass all or a portion of it onto their dealers. Which would clearly not be well received after asking them to commit to building dealerships well in advance of acquiring inventory.

Hopefully, the future is bright for Mahindra’s start in the US. It would be nice to see them get a strong foothold here and in the very near future assemble or completely build vehicles in America with a modern facility and a solid workforce. Mahindra Planet would like to see that 25% go directly into the pockets of US-based employees, rather than go as taxes directly into the government’s bottomless pit and hope it gets passed along to the rest of us.

Is this the next International Scout?

Little is known about the exact details of Mahindra and GV-USA’s plans to build the new United States market Mahindra Pickups and (later) Scorpio SUV’s (in the photo above). The current understanding is that parts and assemblies will be sourced from India and shipped to an undisclosed factory in Ohio for final assembly of the vehicles set to launch here in late 2009.

When you look at the history of Mahindra and their well established, long term relationship with International Truck and Engine Corporation; many of the pieces fall in place. International’s Springfield Assembly Plant in Springfield, Ohio would be a great facility to assemble the new Mahindra light trucks. The Springfield Assembly Plant certainly has the capacity and capability to build light trucks efficiently and economically. The entire infrastructure required to build a body-on-frame vehicle is in place. And you cannot forget Springfield is where International built bodies for their own line of tough light trucks such as the Scout and Travelall from the 1960’s through the 1980’s. Building trucks runs in the blood of that community, and they would do justice to Mahindra’s vehicles and commitment to making a high quality vehicle.

This leaves the question: Could International create a modern day Scout based upon the Mahindra chassis and drivetrain? Absolutely. Depending upon International’s motivation… With ties to Ford reduced to ‘business only’, any light truck non-compete agreements are likely to be in the circular file. GM has recently washed their hands of any interest in the company as well. International is now able to pursue any market they wish. With Mahindra, they have a ready-made chassis and powertrain that fits right in with their core product: High Quality, Rugged, and Efficient Diesel Trucks.

With the engineering, design, styling, testing, marketing, dealer, and distribution resources International has, and modern body assembly and painting facilities in Springfield; an updated Scout could easily be produced with minimal investment. International-bodied trucks could roll down the same line as Mahindra-bodied trucks. With the current US market affinity for retro styled vehicles, the timing is perfect for a modern Scout. With a heavy duty chassis and powertrain, top value and fuel efficiency, and styling that is modern with a nod to International’s past (think Mustang, Challenger, and Camaro) this is an easy build and an easy sell.

The time is right: Please International, make this happen!