As Mahindra inches closer to a US market launch, we’re hearing that the Indian firm is looking for US production capacity to avoid an import penalty. Automotive News [sub] reports that Mahindra’s pickup will go on sale “in phases” starting in early 2010, while the Scorpio SUV (shown here) will roll out about a year later. As for US production, Mahindra’s Executivev VP For International Operations Previn Shah says that he’s “exploring various options,” but that purchasing an existing factory makes the most sense. Do we smell a white knight for NUMMI?
Mahindra hopes that the US will eventually become its major export market, but that may still not be enough to justify a factory the size of NUMMI. Mahindra’s exports to Europe, Africa and South America totaled only 9,000 units in the year ending March 2009, down from 13,000 the year before. NUMMI’s capacity is some 400,000 units annually. Shah expects Mahindra’s numbers to pick up, saying “we have found sweet spots for ourselves.” Still, cheap diesel pickups demand will have to blow up before it will need anywhere near that capacity. On the other hand, GM’s Shreveport plant will be empty soon, if Mahindra thinks US production could approach Colorado/Canyon territory. With GM apparently abandoning the compact pickup market and Ford refusing to significantly update its Ranger, Mahindra’s $100 million gamble on US sales might just stand a chance.
Is there any word on the price of these things?
The price will run in the $20,000 range; but given the 25% “chicken tax” tariff, if the trucks could be assembled stateside (or in Canada or Mexico) the tariff would be almost nil, if not nil. This concievably could reduce the price by a couple of thousand. No small change.
NUMMI’s too big a plant for them, I’m sure of it. Shreveport is, too, I suspect.
They need something a lot smaller, since all they’d need to do would be to import the chassis and cabs (“not pickup trucks”) and construct the beds and install them stateside to make it possible to avoid the 25% tariff.
This is what Toyota, Isuzu, (then) Datsun, Mazda (first sold as Ford Courier) all did – at California ports.
Not sure, but if Mahindra were smart, they’d import into somewhere like Charleston SC and build or lease a plant somewhere thereabouts.
Bonus: right to work state.
They “could” set-up a “temporary leased” situation near a port anywhere, even in Michigan. Then move elsewhere once a proper new plant is set-up.
Hey, what about the old Volvo plant in Halifax, Nova Scotia as a temporary fix for CKD assembly to start out? (When Ford bought Volvo, they pulled the plug on it – despite the fact that it was a profitable plant – too small an operation for a MANLY BIG operation like Ford to countenance, no doubt….)
NUMMI site?
I’d be very surprised.
UAW hangover.
High cost of doing business.
as menno pointed out, this one looks like southeast USA, although they do have ag plants in Calif & Tx.
What happens to Spring Hill when Saturn goes to Penske? Is it still a GM plant, and if so is it new or old GM? Also, is Shreveport new or old GM, and if they shutter it, where are the H3s going to be built for the new Chinese owners?
From wikipedia:
Mahindra has three assembly plants in the US, one is Tomball, Texas, one in Red Bluff, California and another in Calhoun, Georgia.
which depending on the health of the tractor market, offers a lot of flexibility to assemble trucks close to several different ports.
I don’t get these Mahindra trucks. Not at $22,000. They are primitive, they have no brand cache, and they cost 7g more than a base Tacoma.
Why would people buy these things?
Not at $22,000
Where did you get $22,000 – I heard well under 20k.
I got $22,000 here: http://news.pickuptrucks.com/2009/08/taj-mahauler-we-drive-the-mahindra-diesel-pik-up.html
These are turbo-diesels; that’s where the extra value is.
That, and the straightforwardness and honesty of the truck-ness.
We’re moving towards trucks being trucks and cars, cars.
Plus these rigs carry & haul TONS. Literally.
If that thing has a diesel and a PTO, real farmers will snatch them up by the boatload.
Actually, for $22,000 there’s really nothing on the US market like it, this has the potential of taking a bite out of the full-size diesel truck market IMO.
Why would people buy these things?
Small Diesel, 30+ MPG. Why wouldn’t they buy them?
I’ve signed up for a test drive when they arrive stateside. I might even buy one. Too bad I can’t C4C the old 10 MPG Dodge in the process!
–chuck
@toxicroach
There’s no way actual transaction prices will be 7k above a Tacoma. MSRP to MSRP may end up being close (a 2wd base extended cab Tacoma is 19k) but after incentives and such it’s silly to expect the a Tacoma would actually be cheaper comparing similar cab and 2wd/4wd models.
You have a good point if that 7k difference was real, but we all know it won’t be.
And to think that Land Rover refuses to bring in Tdci Defender to America (granted they would have to beef it up for the crash tests).
Small Diesel, 30+ MPG. Why wouldn’t they buy them?
The story says that the diesel won’t be coming to the states, so there goes about 85% of the appeal. For a bare bones, true compact pickup, the Ranger is still available and way cheaper than 22 grand. You can buy a regular cab 4cyl Ranger all day long with manual everything for under $15k from any dealer that actually wants to make a sale. And at least you know that they know how to make it reliable since the same basic architecture’s been around since the dark ages. Thanks, Mahindra, but no thanks.
superbadd75; you misread the article. The pickup will arrive in the states with a diesel engine. Just not the exact same diesel engine that was in the pickup as tested for the article. The SUV that was tested for the article had the diesel engine that will be the one that the US pickup will get.
I don’t know it won’t be that high. Why put it that high if you weren’t planning on charging that? The allure of an Indian truck has got to be price.
Seeing that sticker on that truck is just going to make people laugh and drive off the lot. I just don’t see that truck making a dent on a Tacoma.
@ cdotson: Ah, okay. Even with a diesel, that thing had better be way cheaper. Especially if diesel fuel prices go up again as they did before the recession. There are better pickups for about the same dough.
NUMMI in California or a GM plant in Shreveport, LA?
Doesn’t seem like much of a puzzle to me.
And at least you know that they know how to make it reliable since the same basic architecture’s been around since the dark ages.
Just because they know how to make it reliable doesn’t mean they feel like making any changes. Indeed, the sale of parts can be quite a lucrative sideline for an automaker – why risk it for a vehicle Fords cares about as little as the Ranger?
Looks like it’s a great river-crossing vehicle. Sales should be brisk in Mexico near the U.S. border.
There is no need for another vehicle of this type in the States. It will flop. Actually, it won’t even make it here.
Holy Cow! A small pickup! I have not seen one of those since my father departed with his 1981 Toyota SR5.
If this vehicle is under $16K I’m consider getting one. I’m not usually a truck guy but a small PU would be great to have around and it is Diesel to boot!
menno wrote:
Hey, what about the old Volvo plant in Halifax, Nova Scotia …
Interesting idea. It’d be just about the perfect size and setup for them.
And I agree with you that closing that plant was a bad idea. Not many folks knew it, but the original US-Canada Auto Pact of 1965 had four corporate signatories, not just the D3. Because of an older Halifax assembly operation, Volvo became a charter member of a club from which later Japanese and Korean transplants would be forever excluded.
On a practical level it meant that, because they produced as many cars in Canada as they sold here, even though much of Halifax’s production was destined for the US, Volvo was able to import their other models from Europe and sell them in the Canadian market completely duty free. For over three decades they enjoyed a 6 – 9% pricing advantage over all other import makes in Canada.
Considering that this was back in the day when Volvo quality actually meant something, it made them extremely competitive here.
It was mentioned earlier “UAW hangover” as a potential show stopper for any pre-existing factory takeover.
Factoring in various local government incentives the actual cost of a final assembly line is not that bad (relatively speaking). Forget being competitive with Mexico, China, et al – they can’t compete with other parts of the US.
It’s the labor – and UAW and CAW closed shops are not competitive.
Warning: Prediction being made.
We will not see any new UAW or CAW factory opening in North America in any of our lifetimes. Only existing products and companies shifting work around.
No manufacturing company is going to take the chance of having to deal with these guys.
I’m sure the initial US production will be assembly of knock-down kits as a way around the 25% tariff. Perhaps there is some extra space at one of the Mahindra tractor plants in California, Georgia, and Texas.
Wonder how the diesel hybrid version is coming along?
Looking at the lighter side of this…
I just like saying the name “Mahindra!” Loudly. Macholy. Like that? I just made it up!
But really, try it once. Say it with a booming voice. MA-HINDra!
Didn’t they used to be called “Mahindra and Mahindra?” Wow, two for the price of one. Too bad they went on sale for half-off…
I wonder where Mahindra is going to get a diesel engine capable of meeting 50 state emissions requirements.
I would not rule out NUMMI for three reasons:
1. They wouldnt need to take all of the site, just a bit of it.
2. This area has one of the very largest Indian populations in the US. Think eight screen movie theater showing Bollywood movies.
3. Senator Boxer will be in a very tough re-election fight next year and needs a win to trumpet. Government cash will therefore flow.
With a large population of Sikh and Hindus the NUMMI location, after closed for three or so months, may work with out a union and a good wage.