Mahindra opens Detroit’s first car making plant in 25 years

Mahindra opens Detroit’s first car making plant in 25 years

PTIWASHINGTON 21 NOVEMBER 2017 07:46 IST
UPDATED: 21 NOVEMBER 2017 08:17 IST

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Automobile giant Mahindra on Monday opened its new manufacturing plant with an investment of $230 million in the world’s car capital Detroit, which got its first automotive production facility in 25 years.

The new plant will create 250 new jobs in the US.

“It is pretty rare and extraordinary,” said Michigan Lieutenant Governor Brian Calley at the Mahindra automotive plant launch event in Detroit metropolitan area.

“You are an important and vital part of the resurgence of Detroit,” he told Mahindra employees and top officials including its head Anand Mahindra.

Mr. Mahindra said that his company is committed to growing the Mahindra brand in North America and Michigan.

“This building opening 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,” he said.

In few weeks from now, the new facility will produce an off-highway vehicle which will extend Mahindra’s current position in this growing segment.




The Mahindra Automotive North America plant in Auburn Hills.




Designed and engineered by Mahindra Automotive North America (MANA), the vehicle promises to be unlike anything currently on the market, he said.

“This expansion represents a milestone for us and for Michigan. We started this operation with seven people four years ago -- to be crossing the 250 mark is a testament to the hard work of our employees and what this region has to offer in terms of top automotive talent,” said MANA president and CEO Richard Haas at the inaugural event.

By 2020, additional planned projects will result in 400 more jobs and another USD 600 million in local investment over that same period.

In addition, MANA will continue to provide Metro Detroit- based engineering support for new vehicle platform development for India and global markets.

“It is a great day for my district and my State as this is the first automotive manufacturing facility in 25 years.

This comeback is real and exciting,” said Congressman Dave Trott adding that Southeast Michigan is the birthplace of automotive industry.

“This illustrates the strong partnership between the Us and India,” said Tom Vajda, the Acting Assistant Secretary of State for South and Central Asia as he welcomed the Mahindra automotive plan in Detroit region.

Mahindra has in total 30 facilities having invested about USD 1 billion in the US and providing employment to some 30,000 people, Vajda said as he praised the contribution of Mahindra in American economy and strengthening India-US relationship.




http://www.thehindu.com/business/In...ng-plant-in-25-years/article20608973.ece/amp/

 

Mahindra bringing jobs to USA and start a brave new chapter in Automotive manufacturing North America, wishing Mahindra Good luck.

 

The problem with US carmakers is that the cars are designed to be big and powerful, and so they are a big failure in markets with high fuel prices. I see a benefit for mahindra if they are able to sell some of their vehicles to cut into ford and GM sales. Tech-wise, the germans are miles ahead.

 

each market has some unique qualities. engineering and solving issues in one place will get Mahindra skills and IPR to share the knowledge across other areas.

 

I welcome mahindra but the suzuki had a 2 year exit. US definately needs some small size car but that's a niche market.

GM has brought spark (bolt in India) and sonic. Ford has fiesta. Honda has fit. I don't think that mahindra has a uber small car. Mahindra doesn't have a mid-size or full size car either. They are more like Jeep of India. Crossover is the new buzz word in auto industry so hopefully that can work for them.

 

Those smaller vehicles are made in mexico and the volume of sales are minuscule compared to the bigger cars like Accords, Buicks, Dodges, etc. All these big cars have engines greater than 2.5 L and produce at least 280-300 HP. If you seethe sales of American cars in the indian market, its a big failure compared to the Japanese and Koreans.

If you are mentioning crossovers, assuming XUV500 is their best, state of the art vehicle, they have miles to catch-up. The Thar is not even a shadow of the Jeep Wrangler. I hope they get tech benefit, just like TATA benefited from Jaguar-Land Rover deal. It will be a win win situation.

 

Mahindra ROXOR Off-Roader Set To Launch In 2018

The new Mahindra ROXOR off-roader will be produced at the company’s new facility in Detroit, Michigan.
Shilpa Chopra
November 21, 2017


In a bid to expand its footprint globally, home-grown auto giant and UV maker, Mahindra has set up a production facility in Detroit, Michigan. The company will utilise this facility to manufacture a new off-road vehicle called Mahindra Roxor for the American market. Mahindra has not revealed much details about the US-bound model, though reports suggest Mahindra Roxor will be a derivative of the popular Thar sold in India. Few reports also suggest that the new off-roader could be developed on the SsangYong Tivoli’s platform; however, details are yet to be revealed by the maker. The off-roader has been designed and engineered by MANA and according to Mahindra it is ‘unlike anything currently on the market’.

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While details on the Mahindra Roxor model are hazy, it is expected that the off-roader will use SsangYong’s 1.6-litre engine compliant with the BS VI emissions. This is the same engine that currently powers Tivoli. Transmission choices will ostensibly include a conventional 5-speed and a 6-speed manual transmission, channelizing power to all four wheels. It is expected that the off-highway vehicle will be launched in the US market sometime in 2018. Also Read – Upcoming Mahindra Cars In India

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Known by the name of Mahindra Automotive North America (MANA) manufacturing plant, the facility is built in a vast area of 150,000 sq.ft and is the first plant built by a global automaker in that region in 25 years. This newly opened facility, Mahindra’s new warehouse and logistics operation in Pontiac as well as the Troy operation prototype all come under the expansion plan that involves $230 million investment in Southeast Michigan. Also Read – Mahindra To Showcase 7 New Cars At Auto Expo 2018

The automaker had earlier attempted to venture into the US market with its Left-hand drive Scorpio-based pik-up, though some legal disputes with dealerships led to delay in the US entry. This time, the company seems determined to materialize its plans to start operations in the US passenger market.

https://www.indiacarnews.com/news/mahindra-roxor-off-roader-23105/

 

Yes, Post 2000's there was that craze for the horse-power. There were multiple reasons for the same. i.e new engine advancements, market boom, EPA regulations were easy etc.

American auto makers were more about power and big... Cadillac. Even as of today, The big suv segments is dominated by GM and the runner up is ford (with Navigator). But Honda and toyota were never about the gas guzzlers but convenience and cheap. Therefore they prospered then and even now.

Until a few years from now the smallest vehicle GM produced was Chevy cruze which is a full size car in india and they wanted to charge 13 lakh for that. Their other arms like Opel have also tried the indian market where kmpl is an important factor and failed.

But the market is changing very quickly due to these main factors
1. Carbon credits
GM is currently selling bolt EV (spark in US) at around 35k but is still losing 5k/car. The want to still pursue because that helps them earn credits that in turn helps them sell conventional cars. GM has all their lower line propped up with Turbo and ecoboost technology. OH well, even accord (largest selling retail car) is turbo for this year.

2. EPA regulations.
For 2020, the EPA is to reach average 38 mpg, but target for 2030 is 56mpg. Therefore, all the craze for EV. Even hybrid will have tougher time getting this. Even mercedez is doing start/stop technology

3. Autonomous Vehicles:
Insurance in a US household is around 3k/year. If the driving was autonomous you will save a majority of that chunk since human error accident goes down the drain. i.e Premiums will be far less. Here you see the hardware based companies either opening their Software shops (GM) or collaborate with tech holders (google) or new players emerge (like tesla).