Indian automaker Mahindra to open Ohio factory.
The Wall Street Journal (2/12, Stoll) reports that Indian automaker Mahindra & Mahindra Ltd.'s U.S. distributor "plans to assemble tens of thousands of light pickup trucks annually in Ohio starting in 2009, and to start selling a range of hybrid vehicles in the U.S. by 2010." The company "has been working on a plan to enter the U.S. market next year by offering" two pickup trucks and one SUV. "By assembling pickups from kits in Ohio rather than ship them as completed vehicles from India, Mahindra will be able to avoid a 25 percent tax that is tacked on to pickup trucks imported to the U.S." Other companies "have avoided this tax, known as the 'Chicken Tax,' by partnering with U.S. automakers and using their production facilities in North America or simply selling a U.S. automaker's light pickup truck under their own name brand."
Bloomberg (2/12, Ramsey) adds that "Mahindra has signed up 300 initial U.S. dealers and has a sales goal for its first full year of 45,000 trucks." While "Mahindra will begin selling trucks and SUVs in a U.S. market where sales of both types of vehicles have been falling," officials expect "the low cost of the trucks and the added fuel- efficiency [to] boost U.S. sales to 100,000 vehicles by 2012."