Just days after Mahindra’s diesel-powered compact pickups were approved by the EPA for sale in the US, the Indian automaker apparently canceled its distributor agreement with Global Vehicles according to the message above that was posted to Mahindra’s Media site. Global Vehicles has had a deal to distribute Mahindra pickup and SUV models in the US since 2006, and has signed up 350 dealers to sell the Indian imports. Recently cracks in the relationship surfaced when GV sued Mahindra alleging that the manufacturer was delaying homologation for the US market. GV claims to have spent $35m preparing for Mahindra’s US launch, and dealers were said to have paid $200k apiece to obtain franchises. Meanwhile, Automotive News [sub] notes
The statement by Mahindra hangs a question mark over the 300 to 350 U.S. retailers who have signed franchise agreements directly with Global Vehicles, if the Alpharetta, Ga., company no longer is the distributor.
Nor is it clear that Mahindra has the power to terminate the agreement without a court fight.
Wrangler went on a summer tear last month, more than doubling its July 2009 number, and leading SUVs to a strong rally. The segment’s top 18 nameplates all improved their year-over-year numbers last month, as gas prices look to hold steady through the summer (only the Suzuki Grand Vitara lost ground). SUVs should be way up again (year-on-year) this month as well, as Cash For Clunkers limited SUV sales in August 2009. Strong sales in this segment could continue into the fall on the strength of new launches like the Jeep Grand Cherokee, and Ford Explorer. On the other hand, with the Explorer moving to a Crossover platform and lines between SUVs and CUVs generally blurring, it’s becoming increasingly important to compare mid/large CUVs against this SUV segment. Based on that comparison, it’s easy to see that the mass market tends to pick road-oriented people-haulers rather than offroad-oriented rock crawlers. SUVs may be booming this summer, but in the big picture they’re melting away into the ever-expanding Crossover category. Hit the jump for a bonus graph of Luxury-brand SUV/CUV sales in July.
Schadenfreude recently brought the elder Niedermeyer out of his summer semi-retirement, and for the most part, it’s a consistent inspiration for much of our content here at TTAC. But as natural and healthy as it is to laugh and learn from the mistakes of others, for some reason I’m just not feeling it today. Blame it, if you must, on a certain mellowness that settles in over the glorious course of an Oregon Summer. One Robert Farago always said that hate must come from a place of love, so in the interests of getting TTAC back in lean, mean fighting form, I’m going to indulge in the worst kind of of auto-writing love-fest: I’m going to tell you about how much I love my car. Except that it’s not a car, and it’s not actually mine…
Yesterday we suggested that this line drawing of a smaller-than-full-size Chevrolet pickup meant that Chevy would be “recommitting” to the US market for compact pickup trucks. Today, however, Bloomberg reports that Chevy is planning a mid-sized truck for production in Thailand, and that GM is focusing its smaller pickup efforts on the developing markets in South East Asia and Brazil (importation to Europe is also planned). GM’s Martin Apfel explains
The logical consequence is to build where the customer wants it, as that keeps your costs down. [Thailand and Brazil are] the two centers of gravity for midsize trucks
It’s been written at least a few times here at TTAC that crossovers are the methadone of SUV addiction, and Ford is proving the point, as it prepares to launch its 2011 Explorer. Once one of the most popular SUVs in America, the Explorer is going to a unibody chassis, and the reactions to teaser images on Facebook show that America is still struggling with its SUV addiction. Facebook reactions [in gallery below] show a mixed reaction to the Explorer’s new crossover-inspired look, including unfavorable comparisons to such “cute utes” as the Honda CR-V. Ford is reacting with a video [above] which describes the Explorer as a “21st Century SUV” that offers “do anything, go anywhere” capability. Which is funny, considering that the original Explorer was never exceptional at either off-road or on-road capability. But hey, who ever said that addiction was a logical choice?
The only “real car” on Forbes’ most overpriced list is the Chrysler 300. Really. Despite being based on the compact Cobalt, Chevy breaks sales of its HHR out as a “truck,” in search of improved CAFE performance. And despite an MSRP of under $20k, the PT Cruiser-inspired wagon was still one of Forbes’ most overpriced vehicles of 2010. The rest of the list’s 11 models are unquestionably trucks, or truck-based utes, and save for Nissan’s Titan and Armada, they’re also all from Detroit automakers as well. If you’re looking for more reasons to build a cheap, utilitarian compact pickup truck (ahem, General Motors) this list has got ’em. Hit the jump for Forbes’ list of most overpriced vehicles, and the magazine’s formula for deciding who makes the cut for this dubious distinction.
If you’ve been reading TTAC regularly, you might have noticed that many of us have something of a soft spot for compact pickup trucks. And what started for me as an innate affinity for all forms of cheap, honest, rugged transportation has become full-blown affection on the strength of several months driving a ’92 Toyota with four-cylinders, four-wheel-drive and a manual transmission. Of course, all auto writers struggle with the disconnect between their personal taste and that of the buying public, and cheap full-sized trucks seem to have eliminated all chances of a re-investment in the segment. Ford, for one, has said that it plans on “replacing” its aged Ranger (which dies next year) with Ecoboost-powered F150 options and its Focus hatchback. Dodge, or Ram, or whoever builds the trucks in Auburn Hills is said to be considering an unibody Dakota replacement, but hasn’t made a peep about it in months. Meanwhile, GM is shutting down Canyon/Colorado production at its Shreveport plant by 2012, ending its half-hearted competition in the segment. But, according to Pickuptrucks.com (which is usually one of the best at breaking these kinds of stories), GM is considering a new entry into the otherwise neglected segment.
When something that sounded too good to be true (say a cheap, compact, diesel-powered pickup) keeps getting delayed, you eventually just make your peace with the whole “too good to be true” part. That’s the only explanation for our recent lapse in Mahindra coverage: the news is depressing enough as it is. We last updated our Mahindra tag back in December, with news that a “Middle Spring” launch would be the latest of several delays for the Indian pickup venture. A news clipping [PDF] touting a March launch is still available at the Mahindra USA website. The latest from an actual human being? Mahindra’s US distributor John Perez tells Automotive News [sub]:
Hyundai made a proposal to Chrysler earlier this year under which the U.S. automaker would build a truck for Hyundai based on Chrysler’s Ram truck platform… Chrysler Chief Executive Sergio Marchionne rebuffed Hyundai’s initial approach in February… saying the automaker needs to focus on its established turnaround plans under Fiat SpA. But Hyundai continues to look at truck options and could come back to Chrysler, according to two of those with knowledge of the talks, who were not authorized to discuss the matter because the closed-door discussions were preliminary.
Ram sales were down 23 percent last month, down 20 percent calendar-year-to-date, and down 24.3 percent in rolling 12-month totals. Hyundai is doing just fine without a pickup. Chrysler may have been crazy to turn down a shot at easy volume (that might have gone to Nissan), but Hyundai would be crazier still to ask a second time. After all, Volkswagen’s Chrysler rebadge, the Routan minivan, has sold only 14,580 units in the last 12 months.
Much of the speculation in the leadup to Fiat’s five year plan announcement centered on a long-rumored spin-off of Fiat’s auto business from the rest of the industrial conglomerate. Speculators even drove up Fiat’s share price considerably yesterday on hopes that the long-awaited spin-off would be announced today. And sure enough, Fiat did announce today that it would be spinning off part of its business. The only problem, according to Automotive News [sub], is that the newly-formed unit isn’t made up of Fiat, Alfa and Lancia, but Iveco and New Case Holland. Instead of its car operations, Fiat is bundling off its heavy commercial truck and tractor business into a new entity known as Fiat Industrial S.p.A. (Fiat-branded light commercial vehicles and Fiat Powertrain will remain behind).
Anonymous sources tell the always on-point pickuptrucks.com that Honda will not be replacing its Ridgeline pickup when its lifecycle ends after the 2011 model year. Honda is refusing comment on the Ridgeline’s future, but did tell AL.com that production will continue through 2011, and that “as of right now, we have no plans to discontinue Ridgeline.” But from a sales perspective, Honda might do well to let the unibody pickup die of natural causes. Though the unconventional Ridgeline came close its initial sales goals of about 50k units per year for the first three years of its life, by 2008 sales had dropped to 33,875. Last year the sales drop snowballed, with a 51 percent volume drop to 16,464 units. So yeah, we’ve been noticing that Honda seems less than completely enthused about its tentative attempt at the truck market. The end could well be near. Hilarious counterpoint to Howie Long’s video (above) available here.
If there are two words that can’t be left out of any discussion of 2010 auto sales numbers, they are “incentives” and “fleet.” With a fleet sales binge well underway, and Toyota recall-triggered incentive wars raging with no end in sight, the spring Truck month rituals have been bounteous. And with sales of full-sized trucks through February trending flat and fragmented, they had to be. But will they make a difference?
Recent Comments