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Old 12th July 2012, 01:07   #46
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Default Re: Mahindra to enter US market?

If the source of the news is true, Mahindra has just pulled out from the US market in development of its truck line up. Orginal source was posted on Leftlane News website.

Mahindra ceases development work on U.S.-bound pickup truck


I guess a huge blow was because of the below reasons ; Also it is hard to sell a cheap truck in US; one reason being no matter how financially unstable you are, you never pay the whole price for "vehicle to own when buying". Even the poorest farmer/worker will go for a Ford F150 which is the highest selling vehicle in the US.


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Indian automaker Mahindra & Mahindra’s promise to build and sell low-cost SUVs and pickup trucks in the United States has yet to materialize, which led five disgruntled dealers to file suit.


After Mahindra convinced a number of dealerships in the U.S. that it would begin offering a line of basic vehicles in this market, the Indian automaker brought in more than $110 million in fees and trade secrets to enter the market, according to the lawsuit. As early as 2004, footed the bill for various fees and they launched marketing campaigns to promote the vehicles, but the trucks never arrived. Mahindra’s grand North American market plans included a dealership network of up to 350 outlets, as well as an assembly plant in Alabama, but it has struggled to get its trucks and USVs certified by the Federal government. By now, Mahindra was supposed to have had at least two vehicles on the market, but its distribution deal with Global Vehicles fell apart about two years ago.


According to research compiled by Automotive News, five dealers filed suit in an Atlanta District Court earlier this week. The five dealers – Holloway Buick GMC of New Hampshire; Crown Global LLC of Florida; Elk Grove Toyota of California; Mauro Motors Inc. of New Jersey; and One World Armada of Bellevue Inc. of Washington – are likely to be joined by more, a lawyer representing the group said.

“Our investigation has revealed that Mahindra has defrauded the dealers through a series of deceptions,” said Miami lawyer Carlos Gonzalez of Miami.

Mahindra, meanwhile, released a statement to members of the media saying that it “unequivocally denies all allegations of fraud, misrepresentation and conspiracy.”
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Old 12th July 2012, 15:55   #47
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Default Re: Mahindra to enter US market?

har har har.

I don't know whether to smirk at the whole gungho attitude about the incompetent corporation going to the US as the vanguard of Indian pride collapsing, or whether to congratulate mahindra over making the decision that I have been advising for a very long time, ie the product is not competitive, don't go till it is.

I would pick the latter without question, but for the fact that Mahindra has given cause to US business to suffer losses in the millions because of its shenanigans (misguided if they were well intentioned, criminal if they were not)

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Originally Posted by Fraz33r View Post
Also it is hard to sell a cheap truck in US; one reason being no matter how financially unstable you are, you never pay the whole price for "vehicle to own when buying". Even the poorest farmer/worker will go for a Ford F150 which is the highest selling vehicle in the US.

Actually, thats not the issue. Bottom end F150s with V6 engines, 2 wheel drive and manual transmission cost well under $20,000, which meant that the US truck buyer could get Ford quality, service and parts distribution, larger payload, larger towing capacity, equal fuel economy for less money than the mahindra. the smaller trucks, like the Ford Ranger can drop down into the $13,000 range when various discounts are taken into account.

Mahindra's business case was fuel economy. When Mahindra's test vehicles fared poorly in the EPA testing, the business case collapsed. It turns out mahindra doesn't know more about making trucks than the world's best truck manufacturers do for their own markets. What a surprise.

Last edited by Harbir : 12th July 2012 at 16:00.
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Old 12th July 2012, 16:11   #48
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I don't think mahindra vehicles are roadworthy for freeway speeds of 110 kmph. All mahindra vehicles are all over the place, no handling characteristics or whatever. Its a shame people have to settle for a vehicle made by Mahinder singh. LOL.

Also mahindra was not approved for on road use in Australia. May be wrong though.
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Old 12th July 2012, 21:46   #49
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Originally Posted by Harbir View Post
Mahindra's business case was fuel economy. When Mahindra's test vehicles fared poorly in the EPA testing, the business case collapsed. It turns out mahindra doesn't know more about making trucks than the world's best truck manufacturers do for their own markets. What a surprise.

Absolutely Spot On! I hope this serves as a lesson, when you try to take over a small portion of extremely competitive market of one of the worlds biggest economy.

I hope the tractors division isnt affected by this News/Decision.
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Old 12th March 2013, 07:32   #50
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Five U.S. dealers who claim they were defrauded by Mahindra & Mahindra have won their first small legal victory against the Indian automaker -- the right to be heard.

http://www.autonews.com/apps/pbcs.dl...#ixzz2NHqrCtpR
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