City of Chatham, Ontario Pursuing Mahindra TR20/TR40 Production

[MahindraPlanet]

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The Chatham Daily News posted an article yesterday regarding efforts being made by the Canadian city of Chatham to influence Mahindra and Mahindra into producing light trucks in the province of...

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[Joe Callimachus]

Wonder if they still would have to pay the chicken tax if it were built in Canada?

[pee wee]

I think NAFTA would allow Canada or Mexico assembly options and no chicken tax.

[TBear]

If memory serves correctly, Toyota used to import the HiLux as a chassis-cab. The beds were attached in the U.S., which then qualified them as being assembled in the U.S. and avoiding the "Chicken Tax". I wonder if that would still hold true?

[pee wee]

There have been many examples of manufacturers "getting around" the chicken tax, Subaru made their pickup- the Brat- with backward facing seats in the bed and called it a passenger vehicle. Dodge Sprinter is shipped with seats and windows, then is converted (reverted?) to a cargo vehicle after arrival. It seems like the benefit would outweigh the cost of some minor "assembly" in this country, but maybe the rules have changed. As long as they've had to think about it, I'm surprised neither Mahindra nor Global Vehicles has come up with a stop-gap solution.

[blue7.3]

yup yup, pee wee's right on the NAFTA angle, and the new Ford Transit comes in from Turkey (I think) w/ seats and windows and they are back-converted here in the states...

-pete

[dadtdave]

PeeWee said, "I think NAFTA would allow Canada or Mexico assembly options and no chicken tax."

Chatham Daily News said, "As for the small diesel pickup truck he claims is headed to the North American market, Yott said trucks not assembled or produced within a NAFTA country are subject to a U.S. tax commonly called a "chicken tax'' which amounts to about a 25-per-cent import tariff."

Canadian assembled in an idled Navistar plant works fine for me. My 94 Dodge Minvan was built in Ontario, my 2006 Chevy HHR was made in Hermosillo, Mexico. Aren't many of the Ford f150 hecho en Mexico tambien?

[hsfbfan]

I don't think any F 150's are made in Mexico but the new 6.7l diesel in the SD's will be.

Also, all Dodge Regular cab pickups are manufactured in Mexico.