Mahindra Opens New Vehicle Manufacturing Unit in Detroit
Mahindra Automotive North America invests $230 million to open new headquarters and manufacturing unit in Detroit.
Mahindra and Mahindra opened its new headquarters and an equipment manufacturing (OEM) unit in Detroit on Nov. 20. This makes Mahindra the first company to open a new OEM facility in Detroit in over 25 years.
Indicating the company’s growing presence in North America, Mahindra Automotive North America (MANA) opened its new headquarters as well as a manufacturing unit with an investment of $230 million. The new facility currently has an installed capacity of 10,000 units. The move will help the company plan for 400 new jobs and additional investment of $600 million by 2020.
Rick Haas, the chief executive of Mahindra’s North American auto group, asserted that the company wanted to expand its auto business in the United States. “None of us really know where this journey will take us, but we are here to expand Mahindra’s auto business in the United States,” he said, the New York Times reported.
He also said that this expansion is a milestone for the company as well as Michigan, since the company started its operations with seven people four years ago and has now crossed the 250-employee mark. “It is a testament to the hard work of our employees and what this region has to offer in terms of top automotive talent,” Haas said in a statement.
The latest move by Mahindra puts Detroit right back into the picture, as the city, which was once booming with auto jobs and was hailed as the birthplace of the American motor industry, has of late not been able to stand up to its name of being the Motor City. However, Mahindra’s new manufacturing unit could spell a comeback for the auto industry in Detroit.
The chairman of Mahindra Group, Anand Mahindra, Automotive Division EVP Rajan Wadhera and Haas participated in the inauguration of the facility in Detroit.
“This is an exciting day for Mahindra, our terrific employees and Detroit. I couldn’t be prouder to be here to help open this new facility today. This opening of this building represents our company’s growing presence in North America and locally in the Metro Detroit area where we have tripled our workforce during the past 18 months. We are committed to growing the Mahindra brand in North America and Michigan,” Anand Mahindra said in a statement.
The first model to be built at the new facility will be the off-road vehicle Mahindra Roxor, which is likely to be launched in the United States in early 2018.
“This illustrates the strong partnership between the Us and India,” Tom Vajda, the Acting Assistant Secretary of State for South and Central Asia, said, PTI reported.
As of now, Mahindra plans to manufacture off-road utility that will be designed at the North American Technical Center in Detroit. Mahindra, which has invested about $1 billion in the United States, has 30 facilities employing about 30,000 people in the country.