Global Vehicles lobbying to end Chicken Tax for Mahindra pickups
Should a tax on foreign-made pickup trucks that was first instituted way back in 1963 as a retaliation for a European tax on U.S.-bred chickens affect sales of modern and fuel efficient pickups from India in the United States? That's the question that Global Vehicles, hopeful U.S. importers of India's Mahindra pickups, is currently asking policymakers in Washington. The answer they are hoping for would rid the United States of the so-called chicken tax and would allow the importation of Mahindra's latest trucks, featuring clean diesel engines and around 30 miles per gallon, without the 25 percent tariff.
According to John Perez, CEO of Global Vehicles U.S.A. Inc., "We're seeking an exemption from Washington, based on the environmental benefits of what we're bringing in." Mahindra's new truck is scheduled to go on sale in the U.S. in October or November of this year for $22,000 to $25,000, meaning the tax would amount to over $4,000 on each of these vehicles.
[Source: Automotive News - sub. req'd]
Reader Comments (Page 1 of 1)
Rain 12:30PM (3/09/2009)
$25,000 for a cheap pick up truck?
Resale value?
No Thanks!
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Brn 12:36PM (3/09/2009)
Rain, for that price you also get low build quality.
PabloKoh 1:58PM (3/12/2009)
30MPG diesel pickup. Maybe Chevy can buy them and bankrupt them.
Shyn 8:56AM (5/05/2009)
Rain, you don't what M&M is. This pick up is not cheap (in terms of its price , quality and durability) at all! Just wait for a a test drive and you will come to know :-)
Yikes 12:56PM (3/09/2009)
If the "chicken tax" gets dropped, look for a floor of small pickups entering the USA market. Even pickups from Ford, GM.....
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jharlan 3:22PM (3/09/2009)
Too expensive. They might as well keep them. They need to retail for $15K to 18K. They will be a very, very minor player @that price.
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why not the LS2LS7? 5:02PM (3/09/2009)
This doesn't seem like the right time to drop the truck tariff.
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ale 7:41PM (3/09/2009)
As much as I love Mahindra and their potential, I would like to see them be able to get their plant up and running in Ohio...
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john 9:59PM (3/12/2009)
sounds like many people doesn't know about mahindra.
they have one of the best diesel technology.
mahindra is not a cheap truck. It can be compatible with nissan line of pick ups.
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rick 7:03PM (3/18/2009)
i think if mahindra wants tio sell trucks here than they should let us build them or pay the chicken tax we need the jobs or the tax revenue
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Mogli 11:03PM (4/02/2009)
rick and similar thinkers: I'd love to see a great smallish pickup with good fuel economy being produced in this country. Clearly, Detroit and Japan, with the US-produced trucks from Toyota and Nissan, do not get it that many of us want something like this. Why should I and others continue to wait for a decent, fuel-efficient option in the smallish pickup market? Let's bring the global market to bear on the bad planning by the big automakers and see if they can respond.
rick 2:55PM (4/06/2009)
i agree with you but,mahindra has said this whole time that they would be assembled in the united states. now they are trying to get out of assembleing them in the usa so they can undercut the usa car makers. i believe in fair trade but mahindra knew what it took to get these vehicles here if they want them here than they should build them here or pay the tax . thanks rick
PSUmba 12:12PM (4/13/2009)
These vehicles are being brought into the marketplace by Americans (Global Vehicles, USA) because the trucks fill a niche that no other vehicle manufacturer has addressed. They are clean, green, and will shock you with their quality. Global Vehicles has worked with J. D. Powers & delayed their launch for 6 months in order to ensure that their fit & finish and initial quality are competitive.
Anyone who has worked with Mahindra's tractors (#4 in USA market share) will look favorably on this vehicle ... and know that Mahindra's reputation for durability is legendary!
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loanscooter 1:10AM (5/06/2009)
I really want a smaller diesel truck - something to haul a horse trailer or boat - there are many small diesel options abroad but for whatever twisted reason and it surely isn't life style because diesel makes sense for highway-driving-Americans in comparison to hybrids - US manufacturing won't make the vehicle for the domestic market. Has anyone read about the small engine Cummins is working on - oh yeah, Chrysler owes them $44m and doesn't want to move forward with the project and GM killed their mid-size diesel engine project and neither Ford or GM (if GM still owns either Opel or Vaulhaul) will bring over their fantastic diesel cars from Europe so - what's left for someone with a small driveway that needs to occasionally move a trailer or boat? Let's hope Mahindra shakes things up in the U.S. - I'm going to test drive the truck and buy it if its available next year. But, maybe Mitsubishi, Hyundai, Nissan or Mazda will come to the U.S. market first with a diesel option - VW has a waiting list of people wanting to purchase a TDI Jetta - you'd think someone would notice;)
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Tony 12:25PM (5/06/2009)
Is this the same John Perez that was involved with the Aero or Crosslander? If so, you'll never see it.
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michigandon 6:01AM (5/08/2009)
Tony if you knew the whole entire story behind the CrossLander debacle, you'd know the whole thing wasn't really Perez's fault.
Mahindra is NOT owned by a bunch of former commies who don't want no steenking capitalists muddling in their affairs.
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KHeavrin 11:00AM (5/27/2009)
This looks like a vehicle that could also do well in the fleet sales market. If they intend to go after that market, I hope they pay good attention to the interior design. With the increasing use of radios and computer systems in vehicles by people in the fleet type businesses, I hope they keep the gear selection for an auto transmission on the steering column or dashboard. This allowes the mounting of communications and data systems in the accessable center of the vehicle, clearing the path for airbag usage.
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hurryfurry 12:11PM (6/23/2009)
They need to concentrate on getting those vehicles to the US rather than trying to avoid the chicken tax. I need to trade in my clunker and this would be perfect.
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