Automotive News - February 11, 2008 - (Page 22) 22 • FEBRUARY 11, 2008 Mahindra plans to start selling light trucks in U.S. in 2009 Lindsay Chappell lchappell@crain.com Franchise facts Global Vehicles U.S.A. is signing up retailers to sell Mahindra-brand products. So far, it has ■ Issued 288 letters of intent to dealers ■ Raised its franchise fee to $195,000, from $150,000 ■ Set a goal of 300 U.S. dealers when sales start in March 2009 erations around the world. The company also is a long-standing supplier Global Vehicles U.S.A. Inc. expects to start selling Mahindra-brand imported diesel light trucks in the United States in March 2009. Global is signing up retailers for the truck-only franchise. The suburban Atlanta company says it has issued 288 letters of intent to dealers. Mahindra & Mahindra Ltd. of Mumbai, India, has been known primarily as a tractor manufacturer. It has tractor sales and production op- of a diesel-engine Willys Jeep under license to the Indian military. Mahindra ventured into the Indian passenger vehicle market in 2002 with an SUV called the Scorpio. It has since updated the product, spun off derivatives and begun exporting it to other world markets. Mahindra built 148,213 vehicles in 2006, ranking it No. 32 on the Automotive News list of global carmakers. Mahindra’s bid to enter the U.S. market faces technological challenges, since all of the company’s ve- Mahindra & Mahindra sells this pickup in India. hicles use diesel engines. The EPA has imposed more stringent guidelines for diesel emissions, scheduled to take effect next year. Mahindra has engineers in India and Michigan working to meet the new EPA rules. It also is working with engineers from two key suppliers: German engine component supplier Robert Bosch GmbH and Austrian powertrain developer AVL Powertrain Engineering Inc. The Mahindra product line will rely on Bosch diesel engine technology that has never been used in the United States. William Goetze, Global Vehicles’ president, says he is confident Mahindra will meet regulatory requirements in time for a March 2009 launch. But neither Mahindra nor any other manufacturer has been granted EPA certification under the new diesel rules. When it comes to backing up, why look anyplace else? For starters, 3 products The Mahindra line initially will consist of three imported trucks, all based on the compact Scorpio SUV. The vehicles that will arrive in the United States next year will include several redesigned features, including seats, cockpits and chassis. Global plans to launch the U.S. Mahindra franchise with an SUV, a two-door pickup and a four-door pickup. The trucks will have four-cylinder diesel engines and six-speed transmissions. Within five years of the launch, Global expects to offer a second pickup, a second SUV and a crossover. Last month, the importer raised its franchise fee to $195,000, from $150,000. It expects to have 300 U.S. dealers when sales start in 2009. The specifics of Global’s franchise agreements with dealers differ from market to market, depending on planning volume. But the agreements all require dealers to buy a specific number of vehicles and Mahindramade parts for service from Global. Global has set architectural guidelines for its dealerships, even though it expects to enter the market with a high percentage of its stores dualed with other carmakers’ franchises. The architectural plans include both exclusive Mahindra dealerships and separate display areas inside other dealerships — a store-within-a-store design. Other brands Sure, you could put the rear camera display someplace else, but why? The mirror is an intuitive, ergonomic location that lets you view the reflected scene and the display simultaneously. It’s also a cost-effective solution that simplifies cross-platform integration. And, the on-demand display comes packaged in an auto-dimming mirror with a host of other optional value-added features. The Gentex rear camera display one look shows it all. Gentex Corporation • 600 North Centennial, Zeeland, Michigan 49464 • 616-772-1800 • www.gentex.com A large number of Mahindra dealers have emerged from Global’s unsuccessful effort to import Romaniamade Aro SUVs earlier this decade. At the time the company was called Cross Lander USA and was based in Miami. When that initiative failed in 2006, Cross Lander changed its name to Global Vehicles and moved to the Atlanta area. The company asked its Aro dealers to stay on board as it tried to arrange imports of different products. Over the past year, Mahindra began building small cars in India for Renault, and it has expressed interest in acquiring Ford Motor Co.’s Rover brand. Global Vehicles officials say those issues have no bearing on its creation of a Mahindra U.S. retail network. c http://www.gentex.com http://www.gentex.com
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