Final Nail in Coffin for Global Vehicles USA

Mahindra 2II

It has taken awhile, but the final, smallest hope for an inexpensive turbo-diesel pickup truck imported from India was recently laid to rest. A British arbitration panel has ruled in favor of Mahindra & Mahindra and against Global Vehicles USA.

In our last report in December, it didn't look for good Global Vehicles, which wanted to be the U.S. distributor of Mahindra's T20/T40 compact trucks. But there was an outside chance for some kind of vindication for the company.

The arbitration panel unanimously concluded that the existing contract between Global Vehicles and Mahindra had expired and that Mahindra had not violated the terms of the contract or violated any U.S. laws, according to a recent story filed by Lindsay Chappell of Automotive News and according to a statement by Mahindra filed with the Bombay Stock Exchange.

In 2006, India-based Mahindra and Global Vehicles made a huge public announcement about their desire to introduce a small four-cylinder clean-diesel pickup, but they ran into many delays because of the numerous design changes the vehicle would need to meet safety regulations.

In 2010, just before the new importer was to get approval for U.S. roads by the EPA, Mahindra announced that its contract with Global Vehicles had ended. Mahindra said Global Vehicles had allowed the contract to end, while Global Vehicles said Mahindra had ended the agreement. Global Vehicles sought arbitration in London in accordance with their agreement.

Global Vehicles originally signed up as many as 350 dealers to participate in the program, but after the relationship with Mahindra broke down, some franchised Mahindra dealers have been supporting Global Vehicles over the past year and formed a dealer action committee to raise money for its legal fight.

For anyone who held out a small hope for an inexpensive little pickup truck anytime soon, we'll have to wait a little longer.

Mahinda 3 II

 

Comments

That approach angle killed another one!!

Oh so now they're teasing us with a Ssangyong pickup truck?!

As GW bush once said... "Fool me once... Can't get fooled again."

There will ever be a compact diesel pickup truck, especially a cheap one. Not in this country, no way, no how.

I'll take a tacoma with a hilux diesel

Too bad, would have been interesting to observe Americans' apetite for a return to small trucks' simple and inexpensive roots.

Fat chance of mahindra getting another distributor when
and if they come up with a product that's ready for prime
time.
I hate to see global vehicles get screwed but I guess you
pays your money and takes your chances.

Small cheap truck with diesel...y u no come to America?!?!

I think the Mahindra(Looks like they have died here)experience would be like importing the East German Trabant and saying it represented inexpensive small European cars. A very bad example of Asian sourced small diesel Pickups.

I saw one of thier test mules in the mountains of Colorado, ugly but doing the job. Maybe they can get thier tractor dealers to sell them....

I am hoping the Chevy Colorado comes with a diesel.

What a shock! Then again, maybe not. Who in their right mind would buy one of these? Who thought this thing had a chance getting past the EPA and the NHTSA? Didn't the Yugo teach us anything?

I guess know we have to wait and hope that the gm's colorado and canyon with the baby dmax's make it here. Who knows, that will probably fall through to!

@uh huh.... Hilux 3.0 D4D crew cab, an interior that makes a few Lexus look shabby, all the functionality of a Tacoma and 30MPG, too bad we will never see one here. All the other car companies would learn just how badly they are underperforming and of course we cant have that, that would make too much sense

@devilsadvocate Illogical decision making seems to be order of the day in the US Auto Industry: Why Ford is going to just stop the E-Series and replace it with an European Van, that few people know anything about(Including people in the Industry). There goes all that built up goodwill. GM has the limited production Corvette, but no RHD for the 30% +of the Globe who drive on the Right. Why not apply that to the Silverado, FSeries and RAM? The US has its own Tier regulations for diesels, that supposedly makes the diesels' the least polluting in the world" , but US diesels are illegal anywhere else,as they do not meet pollution regulations? I could go on, but SOMETHING needs to be done to get some sanity amongst the automakers.

@Robert Ryan I applaud most of your statement

But I also enjoy the specific style we have in this country (ok Canada too) when it comes to vehicles. It what makes America America and I can say if I grew up around all the European cars available there IDK if Id be such a car guy. Not saying we are perfect because there is PLENTY we can learn/adapt from Europe in the auto industry but we need to not just straight import it it wont work people wont like it etc. etc. We need to slowly work in things Europe does better into our vehicles. Asia too sorry.

@: moparman That is my point about the E-Series Vans, why NOT update them in the US? They are your VANS!! . European Vans have not bee designed (generally) to tow a large Travel Trailer. As well get products that re now being sold and look for niche markets around the globe to optimize the profits, like the Europeans and Japanese do?

This Manindra was trouble from the beginning. I would not trust any warranty or service for this truck. I would rather have a Chinese truck than this. I agree with Robert Ryan the US auto manufacturers make some bizare decisions that defy logic. An economical small truck reasonably priced could be made that would not compete directly against the large trucks and that would fit nicely as a third choice after the intermediate size truck. It is good to see some of the European designs and technology in some of the US manufacturers domestic vehicles but too much cost cutting makes a product that the domestic market does not want. If the E series vans are successful for Ford it does not make sense to alienate their customer base. Maybe the US manufacturers need to offer clean diesel technology from their European divisions for the US market for those that want it. All the domestic auto makers suffer from some form of insanity. Maybe because they have highly paid executives that are too removed from what the average customer wants. On some of their products they get it right but on others they miss the mark. I agree with you Robert and moparman.

North Americans have to get their heads around the idea that 'bigger is not always better'. The ever increasing fuel prices are slowly opening peoples eyes to that theory. And many of todays smaller vehicles have more capabilities than ever even considered in the past. Small trucks can definitely get the job done, but with that said, there'll always be a place for the full size pickup in North America.

North Americans have to get their heads around the idea that 'smaller is not always better'. The ever decreasing fuel economy on small trucks and better fuel econ on the full size trucks are quickly opening peoples eyes to that theory. For example, Mahinda 21 mpg vs F150 23 mpg. And many of todays full-size vehicles have more capabilities and better fuel economy than ever even considered in the past. Small trucks can definitely get the job done for some folks, but with that said, there'll always be a place for the full size pickup in North America.

Bigger is always better. Stay in europe or canade if you want 90 hp 1.4 liter diesels. At least our big gigantic american full size trucks can get up to speed themselves without the engine exploding...

While there is demand for small trucks, i wouldnt drive one even if it was free.

*canada

It all comes down to the fact that Mahindra employed under-handed tactics to get global vehicles to pay out all that money to create buzz, and then screwed them over. As much as I want this truck, I won't be buying one, because of how Mahindra does business.

@allistar

whats canada got to do with it? we get the same trucks and cars you do....but i'd welcome the small diesels here !!!
If you americans have enough cash that gas mileage dont matter then good on ya (i doubt you do though), ill take a small efficient truck with a diesel any day if i could get one...still wishing up in canada...

The entire mess stunk. Everything Mahindra was a bad dream. They would've taken advantage of US consumers, dealers, and Global Vehicle. And Perez was a multi-time loser long destined for the exit doors. Only desperate dealerships bought into his mind numbing nonsense.

that is one sexy pickup. i want one for myself so i can cruise the boulevard and pick up hot chicks.

At first I felt bad for the dealers that spent millions on these Mahindra dealerships, but now I feel they got what they deserved. These deales and customers were telling us for years that they were going to teach Ford and whoever else a lesson show us what a real truck should be. It never happend and they lost millions and got taught a lesson.

In the (in)famous words of Peter Griffin of "Family Guy"...see link below:

http://www.youtube.com/watch?v=gutCFMc5khY

Well canada is in North America, but technically speaking, it is also europe because at one point, France controlled it, then Britain. Jeez i never thought geography would occur on this site lol.

Does french Quebec ring any bells?

Looks like old tec. or even Tonka. How long has it been since we've seen rain gutters on vehicle roofs?

@Robert Ryan, and Moparman - I think that in a news story a while back Ford said they were not going to totally get rid of the E series. I bet the chassis cab will stay for a while.

I do agree that bigger is not always better. There will need to be a drastic change to make smaller trucks acceptable like smaller cars. We saw that in the '70's. The big North American land barges all died and were replaced by smaller cars. The current Camry, Impala, Taurus etc. are now considered big cars. In the '70's they would of been mid sized. (In between the domestic boats and Japanese boxes).

I doubt Mahindra would of been successful regardless of which NA distributor they went with. Questionable quality, zero reputation (with the exception of their tractors), and no real benefit in mpg over a full sized truck spelled doom. Buying part of Ssangyong Motor Co. isn't going to give them any better market penetration into the NA market. Since the Chinese and Indians are getting together, is the next Mahindra truck going to look like an F150? but with an Indian diesel?

Good. We don't need vehicles that look like some sort of insect anyway.

@: allistar_evans@yahoo.com

Google "Louisiana purchase" and then "treaty of Paris."

The good ole USA wasn't hatched.

@Lou,
Not initially. Ford has registered T150 up to T550 as the model designations of the NA Transit. These have no equivalent in the European version.I suspect that they will replace all of the current E-Series eventually. Unfortunately Ford has not given a timetable or given a description of the models. Still I am intrigued what a T450 and T550 is?

@Robert Ryan - "T450 and T550" - that does sound interesting. Those designations sound like chassis cab units to me.

I wouldn't put all of the blame on Mahindra for the entire deal falling apart. Global Vehicle's founder John Perez has to shoulder some of the blame too. His reputation in past deals helped to sink him too. Remember Aro and Crosslander? The Romanian government did. And they still have an outstanding warrant for his arrest should he ever show up in Romania or any European counry that has an extridition treaty with them. It was close to the the truck's debut when Mahindra started having doubts about Perez and checked into his history with Romania-something they should have done way before they made the deal.

A majority of the dealers who had signed up to become Mahindra dealers were the same ones who were part of the Aro and Crosslander dealer networks that Perez had set up, and they were hanging on to his promises to get a new product line to sell, because he still kept their deposits. I wonder how they are going to get their money back now from Perez, since he is the one who really owes them.

They should have done like Fiat and Used their ownership of International/Navistar to bring back the International Harvester marque. Too much Nationalism and stereotypical Indian miserliness. The execs in Delhi just don't get it.

Mahindra devloping totally new pikup based on xuv500. It was old suv/truck. It was not right product to enter NA. Who gonna buy that in US? Look for xuv500 w80!!

Get a clue! Small trucks were banned by presidential decree about 49 years ago. I guess you guys weren't even born then? There's no shortage of nice small trucks - they're just against the law in America. You have to complain to Obama - not the manufacturers.

http://en.wikipedia.org/wiki/Chicken_tax

I used to buy a new vehicle every 2 years for work. Currently have an 08 Tacoma which is OK....but I am not buying new again unless there is a diesel p/u on the market. Bring it! I'll drive a Mahindra..as ugly as it is!

The "big" three are always whining about all the imports taking away their market share. Then why not do something about it?

Ford used to have a small diesel truck. A friend of ours had one and drove it every day to his job at General Motors (200km round trip). He put 800,000 km on that truck before the body finally gave out.

Why are these trucks available in Europe and not here? On average we drive far more miles than Europeans do. We are constantly being told that oil is a non-renewable resource yet the auto industry continues to produce these gas guzzling pickups.

Big pickups will always have their place in the market but someone in government needs to put a little incentive in place.

Until then, (as a tradesperson) your best bet is a VW Jetta TDI that has a trunk big enough to hold 4 adult hockey bags. Wish I had a little truck!



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