India's $19 bn automotive behemoth Mahindra's American dream is all set to come true. After many false starts and even a highly public failed partnership, Mahindra Automotive North America (MANA) will pen its own plant later this month in Detroit, MI on November 20 2017. The plant is to be 400,000 square feet - perhaps smaller than a typical car plant. Media reports out of local Detroit press suggest that the main plant itself that's being opened on the 20th will directly employ 80 people for starters. That number will likely ramp up as production expands. The plant itself in Auburn Hills is the first new manufacturing plant in the southeast Michigan area in 25 years. It will be inaugurated by M&M Chairman Anand Mahindra, along with Congresswoman Brenda Lawrence and Lt Governor of Michigan Brian Calley.
Mahindra's eventual intent is to eventually get to becoming a full-fledged manufacture of a variety of vehicles. But for starters, Mahindra is positioning itself as a niche provider of specialty, purpose-built vehicles. As we had reported earlier this year, Mahindra's first product will be an off-road vehicle. There is nothing further that has as yet been disclosed on exactly what kind if vehicle that will be, however reports suggest that it will be one that will take on the likes of Bombardier or Polaris.
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Rick Haas, CEO of MANA says Mahindra has already tripled its employment numbers in Michigan over the past 2 years, since there has already been plenty of technical and engineering work being carried out there over this time frame. Based in Troy, Michigan, Mahindra's North American Technical Centre has carried out a lot of work, including now looking at developing chassis systems and platforms for future Mahindra products. A lot of work on the upcoming U321 MPV has been done at this centre. Mahindra also has its other business in the US - GenZe - an electric two wheeler that also began its development journey in Troy, but is positioned a completely different, California based business now.
Mahindra attempted to launch a pickup truck in the US a decade ago, but had not been able to meet required regulatory standards. Back then, Mahindra’s sole distributor, Global Vehicles Inc., took it to arbitration claiming unfair termination of the distribution agreement. However, Mahindra was successful in the arbitration and the distributor’s claims were dismissed. Mahindra then faced a volley of suits from several of the dealers appointed by this distributor claiming damages and lost profits but these suits have also now been disposed off. This, then is a second coming of sorts for Mahindra in the US.
