Mahindra Reportedly Delaying Fuel-Efficient Diesel Pickup for U.S. Until 2010
(Note: See new article that corrects misstatement by Mahindra executive: Small number of diesel trucks will go on sale in Southeastern U.S. by end of 2009.)
Indian automaker Mahindra & Mahindra now says it will be sometime next year before it begins selling its diesel-powered compact pickup (right)
in the U.S., the second change in plans since the company initially announced its plans
for the American market early last year.
The company, which had planned on launching U.S. sales this year, also now plans to import the first trucks from India rather than assembling them in the U.S.,according to a report in the Wall Street Journal.
That strategy will require Mahindra to pay a 25 percent import duty on each vehicle but will save it the cost of a U.S. assembly plant.
Initially, Mahindra had said it would assemble the trucks at a plant in Ohio from parts shipped in from India in order to avoid the so-called Chicken Tax tariff - a hangover from a 1963 import war between the U.S. and Europe in which the U.S. imposed a stiff tax on imported pickups in retaliation for a European tax on U.S. chickens.
The change in plans was prompted by the global recession and the resulting plunge in new vehicle sales in the U.S. Mahindra previously canceled plans to bring a diesel-electric hybrid pickup to the U.S.
Mahindra's trucks, at last report, are to be powered by a 2.2-liter diesel engine mated to a six-speed automatic transmission and are expected to achieve an EPA fuel economy rating of 30 miles per gallon in combined highway and city driving. the company makes both two- and four-door models.
Pricing hasn't been announced, but is expected to range from $22,000 to $25,000.
Mahindra has said that it also wants to bring a small SUV to the U.S. after it gains maket traction with its pickups.
John O'Dell, Senior Editor
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- John O'Dell May 26, 2009, 8:13 AM
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- Diesel, Mahindra
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- Chicken Tax, Diesel Trucks, Imported Pickups, Mahindra
Well, it does look as though it will be a very utility based vehicle, I would also like to find out as to the tow rating, since it does have a very high payload rating for this size of truck. Anyone out there have this info on this Mahindra.