Unless you drive one of its tractors, Mahindra & Mahindra Ltd. is an unfamiliar name. That should change as the company enters the U.S. truck market by year’s end. Two Hampton Roads automobile dealers have bought territories: Beach Ford Lincoln Mercury for Suffolk and Cavalier Auto Group for Chesapeake, Norfolk, Portsmouth and Virginia Beach.
"We really wanted it if we could get the entire market," said Steve Klimkiewicz, vice president of Cavalier Auto Group, which will open showrooms on the site of its wholesale used car store on Military Highway in Chesapeake and in Saturn of Virginia Beach's used car showroom on Laskin Road.
Beach Ford Lincoln Mercury will set up a showroom in Suffolk in part of the 80,000-square-foot building that houses Barton Ford Lincoln Mercury's service and body shop.
Both Klimkiewicz and Tom Barton III, president of Beach Ford Lincoln Mercury, said the initial franchise fee of $195,000 made taking on Mahindra compelling.
"It's a bit of a gamble, but I think it'll be worth it," Barton said.
Klimkiewicz agreed.
"The risk is relatively low, and it's a manufacturer that's a relative success," he said.
Initially, Mahindra will offer a pickup truck similar in size to a Dodge Dakota. Rear- and all-wheel-drive models with two or four doors will be offered. Standard features will include a six-speed automatic transmission, power windows and locks, keyless entry, air conditioning, four-wheel-disc antilock brakes and electronic stability control.
Come 2011, the company plans to offer a revised version of its Scorpio SUV.
Considering sagging truck sales, why would anyone want a truck franchise? Easy. Mahindra's trucks are powered by diesel engines.
It's part of the market larger automakers have steered away from. Nine diesel models from Chrysler, Ford, General Motors, Honda, Nissan and Toyota that were planned for the next two model years have been shelved, leaving a gap in the market.
Mahindra says its engine uses common-rail diesel technology found in Mercedes-Benz and BMW vehicles. The system's fuel injection differs from traditional diesels, giving the vehicle gasoline-engine performance, traditional diesel fuel economy and lower emissions.
But diesel engines cost more to build than their gasoline counterparts. German luxury automakers use their brands' higher price to absorb the cost. In Mahindra's case, that cost can be absorbed using cheaper labor in India.
The EPA hasn't released fuel economy numbers, but Klimkiewicz said mileage is expected to be in the low 30s.
"With everything we saw with the spike in gas prices, I think we'll see a demand for it," Klimkiewicz said.
Barton said the truck will fill a hole in the market that should've been filled by Ford.
"For a long time, we've been hoping Ford would build small diesel Ranger pickup, but there's been little if any change," he said.
While prices haven't officially been announced, Barton said the Mahindra truck is expected to be priced around $22,000.
"Typically, if you're talking diesel, you're talking a premium, but it will be priced comparably with other small to midsize pickups on the market," he said.
But he likes the price for another reason.
"I think part of the problem with Ranger is that if you load up a Ranger, you're competing with low-end F-150s," Barton said. "This is an alternative."
Aaron Bragman, research analyst at IHS Global Insight, said the automaker will find it challenging to lure buyers.
"If they're trying to build off the customer base they already have in tractors, they may find some takers," Bragman said. "But it's hard to sell a diesel truck in a market that largely is walking away from SUVs and diesels."
Barton disagreed.
"From everything we can tell, it will be a great alternative for someone who doesn't need a full-size pickup," he said.
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Mahindra's got drive
Several years back when Mahindra launched the Scorpio SUV in India, it was quite a sensation. Suddenly we had a new breed of person on the roads - the sexy suburban mom. That alone created a big market for the Scorpio. Even then it was a world class car that looked and felt great. The paint job was superb and the trims were classy. One thing about the Mahindra management was they hired the best engineers. Many Indian carmakers (family owned) thought hiring polytechnic graduates and paying them peanuts would do the job, with disastrous results. Once on a train journey (the rail line went past the town that makes the Scorpio), I met a Mahindra engineer. He told me that even he could not procure one for himself as the demand was skyrocketing. In India, pull does not mean torque alone. Demand for every imaginable luxury is so great that pull (influence) lets you jump the queue. To be seen in the latest car is what matters, so people try everything to get hold of one. As a journalist I can say that in the 10 years I worked in India, I didn't know a single journo who bought a car from a showroom. They would speak directly to the owner (or failing that, Vice-President PR) or failing that
new mahindra
I am anxious to see the new Mahindra - I applaud Beach/Barton Ford
for introducing it to our area, and they are still "All American" in
my book !!
If it's reliable, people will buy it
If it is a reliable vehicle, I don't doubt Americans will buy it. One thing about the American people: we don't care who builds it, so long as it's economical, reliable and we can get it in the color we want it in. Americans do not 'buy American.' Walmart's success is proof of this. Americans buy cheap products from EVERYWHERE, thinking we're getting a great deal when all we're doing is selling out our country and our workers. As Pogo said: 'We have found the enemy and he is us!'
They will prpbably be very successful
Especially when Cap and Trade takes hold and drives the prices of US made trucks up a couple of thousand more while India goes right on using cheap coal for its industry.
ALSO WONDER
I wonder if Mahindra is be successful as say a Hyundai or if they are going to end up like Daihatsu. In any case, for Beach Ford -- they're not "all American" anymore.
ALSO WONDER 2
Correction to first post -- accidentally hit the post button:)
I wonder if Mahindra will be successful as say a Hyundai or if they are going to end up like Daihatsu. In any case, for Beach Ford -- they're not "all American" anymore.
Hey Pilot -- how about a feature that allows a user to edit their posts if need be?
Small Diesel SUV?
Put me down for one!!!
No National Manufacturing Policy
Our trade skills diminish with each plant closing. There has not been any national manufacturing policy to benefit original equipment makers. Its been up to each state to develop one. Both Georgia and Alabama have newly built auto manufacturing plants. I don't see either the Federal Government of Virginia State Government doing much of anything, nor do I expect them to. I just wonder how long before our trade skills become so diminished that we have to have the majority of our defense weapons and platforms outsourced as well.
I wonder
if their customer service centers will "outsource" back to their homeland? It would be a hoot if the centers actually had Americans answering the phones...I mean American companies "outsource" to India for customer service..so shouldn't Indian companies' customer service centers have American agents? Reciprocation! LOL
There is no other small diesel truck
There is no other small diesel truck in the US market. The "BIG 3" have ignored this segment. Lack of inovation, high cost, unions, and government regulation, have all contributed to the demise of the US auto industy. Now the government is running GM, I can wait to see what they are going to do to resurrect this company. What has the government EVER done efficiently? Amtrak - runs a deficit, Medicare - bankrupt, Social Security - Bankrupt, Post Office, Veterans Adminstration, you name it........US governemnt in general - printing money like there is no tomorrow. But guess what, there is a tomorrow, and we are all going to pay for this stupidity and power grab in Washington.
I've heard (before this
I've heard (before this announcement) that the employees at the local Ford plant suggested small sized diesel pickup to Ford. But Ford wouldn't do it, perhaps because it could potentially threaten the high priced (and more profitable) large diesel trucks.
We need new US auto makers.
I WANT ONE !I
I WANT A BRIGHT YELLOW WITH GPS .
GM, Ford and Chrysler will
GM, Ford and Chrysler will out source manufacturing to other countries in a heart beat. Ever check the domestic content on the new Ford Fusion hybrid? Made in the USA? Not hardly.
I would love to buy American but the big 3 dont build much in America anymore. Their whole " buy America " cry is nothing more than a sales pitch.
If these were on the market a year ago, I might be driving one.
I was looking for a compact pickup, but GM stopped making the S-series and Ford has all but abandoned the Ranger, not updating it for the better part of a decade. I would have bought a diesel if I could, but there hasn't been a small diesel pickup in this country since the '88 Isuzu Pup.
I ended up getting a Toyota Tacoma which was bigger that I really wanted, but I was ultimately sold by the base 4-cyl engine, which is more powerful and more fuel efficient than Ford's small V6.
It's very simple
If you feel that it is wrong for the import from India to be sold here then just stay away from any lot that has one on it. Be sure to tell all your friends that they should stay away from these vehicles. Now if you are as good at that as you are complaining about imports from other countries, the sales will fall and they will go away. SEE PROBLEM SOLVED!
40 MPG !!!
I feel that it's wrong for Americans to have to drive trucks that on get 23 mpg at best. When the rest of the world (3rd world countries included ) drive trucks that get 50 mpg. (Isuzu D-max ) And the US won't let me import one. Maybe if this india truck has good sales the big 3 will follow with diesel trucks with high mpg in America. They are following the lead over sea already Ford Ranger Max. I think Big Oil is keeping these trucks out. And the Big 3 follows the sales leaders, they don't lead the way like America should !!!
Great. And some Americans
Great. And some Americans will actually buy these. It's too bad our manufacturers are handicapped by the UAW, and our system is handicapped by socialist government takeovers and massive taxation levied against the very people we need to continue spending - the rich.
Sure
it has nothing to do with the manufacturers not developing more fuel efficient vehicles. It's all the unions' or the government's fault. Can you come up with something new?
Yes, Americans will buy
Yes, Americans will buy these because the Big 3 do not offer a small truck with a diesel engine.
Hey "americanamerican"
I'll help you pack! If you don't value your employees any more than that I hope you do move. They apparently have some need for you in India! I'll even buy your ticket!