Wednesday, March 31, 2010

Mahindra Launch Delays: Is 2010 Too Soon?

Automotive News published a fantastic report by Lindsay Chappell on the state of Mahindra’s US vehicle launch on Monday. It has subsequently been hacked by the blogosphere into disjointed, bite-sized chunks of reconstituted “news”. We’re not going to do any further disservice to AN here, so please click this link, read the article in its entirety, then finish reading this Mahindra Planet commentary. Automotive News: Mahindra Dealers are Still Waiting


Missed Dates
Although AN was unable to contact Pawan Goenka for a comment on the delays for their article, Mahindra Truck Forum member, Joe Callimachus was able to directly contact Goenka by email late last week. His letter follows:
Pawan,

On March 4th you told Reuters that Mahindra would be announcing the times for the US launch of the Mahindra Pickups, TR20 and TR40, in 2-3 weeks. It's officially three weeks today.

I really need to decide on buying a new pickup and the TR20 is exactly what I want. But I can’t keep waiting forever. My F250 is literally falling apart. I just had to take one of the fuel tanks off ‘cause it rotted away.

I would like to know if you are going to get the EPA certification and start production of these trucks soon. If not I will have to start looking at other trucks that I really don't want.

Yours truly,
Joe Callimachus
Goenka responded to Callimachus’ letter with the following:

Joe,

Thank you for your interest in the Mahindra Pickups. It is very encouraging to note that there are customers waiting to purchase these vehicles. Unfortunately we are not in a position to announce a definitive date as we are still waiting for the homologation process to be completed. Only after the process is completed can we give a firm date. Hope you are able to wait for the vehicle.

Regards,
Pawna Goenka
President (Automotive Sector) Mahindra and Mahindra
Obviously, Goenka is very noncommittal at this point, as is Global Vehicles. This only reaffirms contact that Mahindra Planet has had with GV and franchised dealers. All news and timelines on the launch have been driven by India since the start of 2010. Global Vehicles has taken a stealthy approach to PR and media, only passing on information as they get it, and not offering much more. It’s better to keep quiet, than to keep pissing on the customers’ Cheerios.


Feeling the Love/Hate
The overall feeling among dealers and fans is positive about Mahindra products, and most are confident that Mahindra will be a great success… once they get here. Some of the web media seems to perpetuate the gloom and doom of missed launch dates and lack of information (not that we haven’t done it either).

Whatever. That’s old news, so get over it. Part of Mahindra’s (and GV’s) charm is that they are so excited about, and emotionally invested in, their product that they tend to be overly optimistic on announcements and timelines. Does it hurt their credibility? Possibly. But then, would you rather be known for multiple missed launch dates, or for selling a crappy product that falls apart, or possibly accelerates your customers into oblivion, or worse?

Tensions Are High
Clearly there are strained relations between GV and Mahindra. GV finds themselves precariously hanging onto millions of dollars in franchise money from dealers who are spending even more money to pepper the country with proper sales shrines for Mahindra vehicles (insert your own Taj Mahal quip here). In return, Mahindra will not commit to a go date.

We’ve Waited This Long
Between supplier issues in India, the complexities of making a new vehicle ready for the road in the United States, and the development of new world-market platforms, there certainly could be concern that even a summer of 2010 launch may not be a possibility. Mahindra Planet has previously questioned some of the logic in actually launching the current first generation Scorpio platform (TR20 and TR40) in the US when the second generation vehicle looms large on the horizon.

Keep in mind that the truck Mahindra is trying to launch here is new to us, but was first introduced to India in 2002. Aside from the arguably relevant and truly geriatric Ford Ranger, eight years is ancient history for any unchanged vehicle platform for sale in the US.

From the AN article:
Speaking with Automotive News last year, Goenka said Mahindra's entry into the United States was important -- but not the company's most important current project. He said only about 6 or 7 percent of Mahindra's total global engineering force of 1,000 was working on the U.S. entry.

"We also have three new vehicle platforms we're working on right now and just completed a fourth," Goenka said. He said that entering the United States would cost half as much as developing a new vehicle platform.

More important, he said, was doing it correctly: "A launch date is very important to us, but not as important as getting our product right."

At this point, would it make more sense to redirect the efforts of those engineers working on Americanized pickup design projects and ensure that the next generation trucks are inherently designed with the US-market in mind?

If Mahindra were to scrap plans to bring the current generation TR20 and TR40 to the US, do a post-mortem on everything they have learned about developing a US vehicle, and use that knowledge in making a solid effort with a brand new truck, would they lose any more face than they already have? Again, we’ve waited this long for Mahindra, what are another few months or even another year going to matter.

Go ask your neighbor if they plan to buy a new Mahindra this year. Unless they are highly aware of auto industry news, a farmer, or possibly Indian-American, they probably won’t have a clue what you are talking about. It’s easy for all of us closely involved in Mahindra goings-on to assume that everyone in the country is on the edge of their seat waiting for these trucks. In reality, if Mahindra were to wait until 2011 to launch an all new truck, most Americans would be none the wiser, but maybe all of us hardcore fans would reap benefits worthy of our patience.

Monday, March 29, 2010

Dealer News for March 29, 2010

Some new dealers added to the Dealer Directory last week. Also check out all of the construction going on at MahindraNC this spring.

Montana Dealer
Archie Cochrane Motors in Billings, Montana has been added to the Mahindra Planet Dealer Directory.

Massachusetts Dealer
General Truck Center in Methuen, Massachusetts has been added to the Mahindra Planet Dealer Directory.

Georgia Dealer
Childre Mahindra in Milledgeville, Georgia has been added to the Mahindra Planet Dealer Directory.

Kansas Dealer
Olathe Ford-Lincoln-Mercury in Olathe, Kansas has been added to the Mahindra Planet Dealer Directory (thanks for the tip, Ack!).

MahindraNC Construction
MahindraNC has been busy with the construction of their Mahindra facility this winter. They have been posting photos to their Facebook fan page and Twitter (@MahindraNC) accounts.

Friday, March 26, 2010

US Mahindra Test Drive Interview, Part II: Power, Style, and a Great Offer


This is Part II of our interview with Jay Keffer of Motorcars Mahindra. Click here to read: Part I

Power
MP: Explain the power characteristics of the trucks you drove.

JK: “The 1st truck I drove was a very foreign market TR40. I was not impressed with the power of this truck but none the less I was cordial as I was a guest. I didn’t realize it at the time but I was being set up by GV. The next truck I drove was the TR20. Before I got out of the parking lot I was smiling ear to ear. I looked over at Fernando and said WOW. He too was smiling ear to ear. At this time he told me that this was a step closer to the US truck but that our truck was even better. This truck felt like a scaled version of an F-250. Powerful with a firm suspension but didn’t ride rough at all. The brakes are touchy firm and will put you through the glass until you get used to them. This version could have been released last year with much success. To be told that the American spec truck that we receive will be an improved version of the “enhanced” TR20 I drove is very, very exciting.”

MP: How would you say the power compares to other similar sized pickups you have driven?

JK: “That’s a great question and a difficult one to answer. I really didn’t find myself comparing it to anything while driving. If I had to compare it to something I guess it would be a Kubota truck. That’s if Kubota made them.”

Styling
MP: Styling is a polarizing element of the Mahindra TR20 and TR40 (not that it’s necessarily a bad thing). I will admit, some vehicles I have seen first in photos or video have not looked right to me, but after seeing them in person, I liked them (the BMW Z4 was one for me). What were your impressions when you saw the trucks in person for the first time?

JK: “These are great questions. Before seeing them in person, people asked me “What is a Mahindra?” I told them that it was like a Dakota sized truck with a diesel. I guess that was O.K. but I haven’t told anyone that since I saw and drove them for myself. They are taller than any midsize truck I have seen. The bed was deep with smaller than normal wheel wells (in the bed). Something reminds me of the Toyota T-100 but I can’t put my finger on it. Maybe it’s the leveled out hood in combination with the grille and stout front end (not as wide as the T-100 though). So maybe a cross of a T-100 with some Land Rover characteristics (tall with big glass) with a little Kubota mixed in (work horse diesel).”

Motorcars Mahindra
MP: I understand that you are considering creating a special reservation list and making a special offer to Mahindra Truck Forum members on the delivery of the first Mahindra TR20 and TR40 pickups that your dealership receives. Would you care to reveal this offer or make a statement at this time?

JK: “Absolutely but first I have to explain something. I was destined for a career in automobiles. I’ve had this car crazed passion since as long as I can remember. I drive a different car from our used car inventory everyday and not just the flashy fast ones (although those are the most fun). I drove straight thru from Cleveland Ohio to Alpharetta Georgia with very little notice after working all day at the dealership and spent about 4 hours meeting, seeing & driving Mahindras. On my drive home that night I couldn’t wait to get back to the store to put my name on a Fiery Black TR40 4x4 with Leather/Alloy & Tow package. The next day I read all the posts on MTF from people who are just as excited to own one of these trucks as I am. The members on the forum were all very thankful for whatever info I could pass on and they all thanked me for driving down and getting a look for myself. There a lot of “Good People” on the Forum all of which I feel a little closer to since my involvement. One guy even picked up the phone and called me just to talk – that’s cool! (Here’s to you topgut). So, here is a “Thank You” to all the good guys and girls on the Forum. I have ordered 40 trucks which is the most any dealer was able to order (and not all did). The order platform for all dealers was 20% TR20’s and 80% TR40’s. Out of the 40 I have coming 38 are available. I will post my entire incoming inventory on the Forum tomorrow for all to see. Any Mahindra Truck Forum “Member” can quote back the truck they want and I will put their Member Name on that truck until it shows. I don’t want any deposits and will not ask for anything from any member until the trucks arrive. Let’s call it “Reserved Upon Arrival”. Once that truck hits my lot I will contact the member that reserved it. If that member purchases the truck they reserved I will ship it to their front door at my expense (US only please). I hope anyone who takes advantage of this will get as much enjoyment on seeing their name on one as I do.”

MP: Thank you again, Jay. I appreciate your time and wish you luck with Motorcars Mahindra.

JK: “Thanks for the opportunity it was great to hear from you.”

Mahindra Planet hopes to be able to give a more detailed test drive report once the US-spec TR20 and TR40 pickups hit US soil. So stay tuned.