Mahindra getting ready to enter US auto industry next year via Navistar?
Earlier last week, in a report, we mentioned about a rumor which stated that Mahindra is delaying their launch in US as they don’t want a middleman. Mahindra first announced their intentions of launching their products in the US market in 2006. After that, they went ahead and signed a contract with Global Vehicles USA. According to this contract, GV USA will be the sole importer and distributer of Mahindra vehicles in America.
Mahindra was supposed to launch a range of pickups in the US according to this contract with GV USA. But year after year, Mahindra has delayed the launch due to unknown reasons. Sometime back, Mr Anand Mahindra, “We do not have any specific date for US launch. We’re still interested in getting into the US. We don’t want to turn this into a war of words.” While, Mr John Perez, CEO, Global Vehicles USA, said, “Mahindra delayed government certification to improperly terminate distribution contract. The bottom line here is Mahindra now believes this is a huge project. They want us out of the way so they can go direct and save the money we were going to make.”
It’s been five years and Mahindra has still not fulfilled their contract with GV USA. Now a new report has emerged which suggests that Mahindra is in talks with Navistar International. According to this report, Mahindra will use Navistar’s Alabama facility as an assembling unit for their T20 and T40 range of pickups, which Mahindra plans on launching in the US.
Navistar entered India through Mahindra and now it seems that Mahindra wants to use the same relationship to enter US. Mahindra and Navistar have been working together in India since 2007. They sell a range of trucks and buses in the country.