Often Delayed Mahindra Trucks Due In December

Once, twice, perhaps three times or more small pickup trucks from India’s Mahindra & Mahindra company have been promised for the U.S. market. As far back as 2006 we have been hearing that these vehicles were going to be imported by Global Vehicles U.S.A., Inc., but delays beginning in 2008 changed those plans time and again.

EPA Certification

The latest hold up involved the all-important certification from the Environmental Protection Agency. Without the EPA’s approval, Mahindra’s plans would be delayed indefinitely.

On Friday, Global Vehicles issued a statement following the announcement by Mahindra that the Indian automaker had won approval from the EPA. Global Vehicles noted that despite its ongoing litigation with Mahindra, they expect to make available the first trucks to U.S. consumers before the year comes to a close.

Pending Litigation

Global Vehicles is the exclusive distributor for Mahindra trucks, but they sued Mahindra over the delays as well as to ensure that they remain the exclusive distributor according to the July 27, 2010, issue of The Wall Street Journal. That suit was also designed to protect its 300 U.S. distributors who have invested a significant amount of capital in readying their showrooms.

The Indian trucks will compete against the Toyota Tacoma, Nissan Frontier, Suzuki Equator, Ford Ranger, Chevrolet Colorado and GMC Canyon. Unlike the other models, the Mahindra trucks are powered by diesel engines, 2.2-liter four-cylinder engines paired with six-speed automatic transmissions. Available in two- and four-wheel drive, the Mahindra TR20 and Mahindra TR40 should get about 30 mpg on the highway, easily the most fuel efficient trucks in its class.

Additional Models

Expect Mahindra and Global Vehicles to settle their differences and begin working on expanding Mahindra’s U.S. product lines soon after the trucks go on sale. A compact SUV, based on the platform underpinning the trucks, is expected to follow in early 2011 with an undetermined model dubbed MUC expected to be introduced in 2012.

With the introduction of the Mahindra trucks, the automaker becomes the first Indian car manufacturer to sell its vehicles in the United States. Auto Trends will provide additional information about the trucks closer to the distribution date.

Resources

The Wall Street Journal: Mahindra Sets U.S. Pickup Sales

Auto Trends We’re Following

What’s in the news?

The summer months are supposed to be fairly quiet when it comes to developing auto industry news stories, but there is enough happening this summer to keep everyone’s eyes focused.

This time last year the federal CARS or “cash for clunkers” program was heating up, introduced on July 24 and offering an artificial surge in car sales. In 2009, billions of dollars of taxpayer monies were being directed to an industry already benefiting from tens of billions of dollars in bail out bucks and other relief. What good the program did is a matter of debate, but know this: there is no desire on the part of most politicians to bring it back.

Here are some of the auto trends we’re currently following:

• The 2011 Cadillac CTS Coupe is in production and the first cars have left the factory floor and are enroute to Cadillac dealerships. This model will expand the CTS portfolio which now includes a sedan, sport wagon, the coupe and V-Series versions of the sedan and soon the wagon and coupe.

• Toyota knew about engine problems with its Lexus models as far back as 2007, but didn’t issue a recall until July 1 this year.  Automotive News reports that the first customer complaints for affected Lexus models dates to March 2007, when Japanese customers complained about defective valve springs.

• Not much has been said about Ford’s sale of Volvo to Geely in recent months, but that is beginning to change. The Wall Street Journal shared a statement from the EU’s antitrust body which said, “The Commission concluded that the transaction wouldn’t significantly impede effective competition.” Expect that Ford to conclude the deal sometime this summer.

• How will Chrysler handle the sale of the Fiat brand in America? That is a good question, one that has remained unanswered even as the Fiat 500 is being prepared for its stateside debut later this year. The Kenosha News reports that Chrysler dealers are receiving packets outlining what is required of them to be considered for Fiat dealerships. Chrysler, 20 percent owned by Fiat, will be establishing 200 dealerships in hopes of selling 50,000 Fiats annually.

• Will the Detroit 3 survive? Some people are still asking that question although Ford’s position is by far the brightest of all three. GM appears to have stabilized and even Chrysler is enjoying a boost thanks to its recently released 2011 Jeep Grand Cherokee.  The Detroit Free Press says that all three automakers appear to be able to ride out the current economic storm.

That’s it for today…new stories shared as we discover them!

Is 17 Million Annual Car Sales Possible?

During the lowest point of the recession, some automotive industry analysts were declaring that the era of robust auto sales for the United States was over. After peaking at 17.4 million annual units sold in 2000, sales gradually slid over the decade until plunging in 2008 and finally bottoming out at 10.4 million units for 2009.

Annual Sales

In the course of the recession, the US lost its long held position as the top car consuming country in the world, as China saw its sales surge in the face of an American retreat. Few are predicting that sales will return to previous levels at least in the next few years with some saying that 12-13 million annual sales is the most likely scenario, effectively becoming the “new normal” for the country.

Fortunately, that position is not universally held.

According to The Wall Street Journal, the management consultant firm A.T. Kearney, Inc. has issued a much more positive projection from 2012 and beyond even as sales are likely to climb to just 11.7 million units for 2010.

Optimistic Predictions

For 2012, Kearney is predicting US sales to reach 16.8 million units, 17.8 million in 2013 and 18.6 million in 2014. These sales numbers are the company’s “optimistic” predictions with their “pessimistic” numbers reflecting 12.9 million sales in 2012 followed by consecutive 14.6 million units sold in 2013 and 2014.

Even with baseline sales of 16.1, 16.5 and 17.5 million units in 2012, 2013 and 2014 respectively, few analysts are predicting that the 16 million unit threshold will be reached before 2013. Still, mostly everyone, including Kearney believes that pent up demand will bring customers back in to dealer showrooms. And, though cars tend to last much longer these days, the number of people with cars ten years or older is skyrocketing. Those people are seen as contributing to stronger sales in years ahead.

Outside Forces

Auto Trends doesn’t make predictions based on anticipated sales data, given the vagaries of the economy and other market conditions that may weigh in. The national debt is at an all time high level and taxes are bound to increase as national health care is introduced and other funding mandates arrive.

Finally, as A.T. Kearney partner Daniel Cheng noted, economic problems in Europe and elsewhere or terror threats could diminish the auto industry’s hope for a strong recovery, perhaps making everything I’ve written here moot!