REPORT: Mahindra out shopping for new U.S. pickup factory
Indian vehicle maker Mahindra is looking for a way to avoid import taxes when it puts its pickup truck and Scorpio sport utility on the U.S. market sometime in 2010, so it's no surprise that Automotive News is reporting that the manufacturer is on the hunt for a stateside assembly location. It's the same reason why there are Honda and Toyota plants here, and Mahindra is no stranger to selling vehicles in our market – or assembling them here, for that matter.
Already well established selling tractors to American farmers, Mahindra has three U.S. plants for its agricultural products already. Looking at how Mahindra has stretched out to many different regions and markets, there's little doubt that assembling pickup trucks here in the U.S. from knock-down kits is going to be easy, as they're already doing the same thing in Egypt and Brazil, for example.
The U.S. market has precious few true small pickup offerings left, the Ford Ranger, Toyota Tacoma and the Chevrolet Colorado/ GMC Canyon twins are about all there is, and there may be untapped potential for a well-priced truck, particularly one with a diesel engine. That's what Mahindra is banking on, as it is apparently planning to make the United States one of its largest export markets.
[Source: Automotive News - sub req]
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Reader Comments (Page 1 of 2)
BigMcLargeHuge 3:36PM (8/28/2009)
With GM shedding Truck/SUV facilities earlier this year, and Toyota about to do the same, I'll bet they find a building in N. America for a discount.
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Chris Edstrom 3:36PM (8/28/2009)
Hey, I happen to know a place in Fremont that's for sale...
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/28/MN6919EL3P.DTL
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Wobbly_ears 3:46PM (8/28/2009)
Actually, it is a better idea. If UAW thinks that they can beat down Mahindra, they don't know a thing about the militant Indian labor unions. Compared to them, UAW probably is very civilized. Mahindra has stared down much more militant unions.
One thing about Asian labor unions is that they make the management tough. That's why Asian car companies can go mano-a-mano with unions in US while D3 quiver in their boots.
Erik 4:09PM (8/28/2009)
I am shocked it took 7 minutes for this comment to be posted.
Farmboy 4:52PM (8/28/2009)
Link of the Day
Chad 2:38PM (9/02/2009)
There's also the Oshawa truck plant.
Julius 3:36PM (8/28/2009)
Hmm... as I recall, the Colorado/Canyon plant in Shreveport will be empty soon...
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paul34 3:38PM (8/28/2009)
The only question is whether M&M will want to deal with a union or not. My guess it towards the latter, which would probably eliminate a lot of newly closed plants.
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Luis 3:48PM (8/28/2009)
just because they buy a building doen't mean they buy the workers.
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Aprime 4:16PM (8/28/2009)
Seriously, I don't understand what they're on about.
Neil Timmerman 3:50PM (8/28/2009)
I suspect this will be a successful product.
Too bad Jeep never made the Gladiator. That would have been the coolest truck ever. I would buy one and I don't even need a truck...
http://www.allpar.com/model/jeep/gladiator.html
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inline6 3:58PM (8/28/2009)
AB forgot to mention three other major players:
Dodge Dakota, Nissan Frontier, and Honda Ridgeline.
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Wobbly_ears 4:07PM (8/28/2009)
Since when did Honda Ridgeline become a truck?? Just because poseurs drive around claiming they drive 'trucks' doesn't make it a fact.
Ridgeline is an Accord wagon with the rear top lobbed off.
Just sayin' ;)
tanooki2003 4:07PM (8/28/2009)
They aren't players mainly because the trucks you have mentioned are no longer compact in size. In fact they are considered midsized trucks, or what would qualify as full size trucks if it was 10-15 years ago.
inline6 4:10PM (8/28/2009)
Yeah, the Tacoma is FAR from compact (221" overall with the DoubleCab Long Bed), and the Canyon/Colorado are considered midsize, too.
merlot066 4:19PM (8/28/2009)
They definetley should've included the Frontier, the Dakota even, but the Honda what? Ridgeline? Is that the useless thing that sits in front of Honda dealers and wastes space on the lot that could be used for good cars from Honda?
another_one 4:29PM (8/28/2009)
The Ridgeline and the Dakota are mid size (or larger)... i don't even think the Canyon is comparable.
The state right to work laws have affects on unions... I expect a south-eastern facility most likely.
I really like the Jeep gladiator as well... but it would never be good gas mileage... :(
Farmboy 4:53PM (8/28/2009)
Really, Ranger is one of the last true compacts.
the friendly grizzly 7:31AM (8/29/2009)
The Dakota is a quite large truck, darn near as big as a full-size. Same with the Frontier. Both also have fuel mileage figures that are virtually the same as a full-size truck.
A small truck, like the Ranger, the GM twins, and, well, the Mahindra offerings, are perfect for parts-chasing, errand-running, post-office runs, and all the other little every-day tasks where a nimble vehicle with the ability to carry a load and yet still have a small turning circle and economical operation count for something.
MahindraPlanet 4:05PM (8/28/2009)
Mahindra plans for the US to be it's biggest export market in the future. I'm sure they are planning ahead, have have lots of location/facility options for building trucks. They should be able to pick up a factory at bargain basement prices. I'm also certain there are a lot of US auto workers would love to be building cars again... union or not. www.MahindraPlanet.com
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