Indian automaker Mahindra opens manufacturing plant in Detroit

DETROIT, Mich. – Mahindra Automotive North America (MANA) has opened a new manufacturing plant here, the first original equipment manufacturer in southeast Michigan in more than 25 years. Mahindra also opened a warehouse and logistics operation in Pontiac and already has a prototype operation in Troy that has created more than 250 jobs. Mahindra’s initial $230 million investment is expected by 2020 to generate an additional 400 new jobs and another $600 million in local investment as a result of other planned projects.

In the new plant, Mahindra will manufacture a new off-road vehicle which will extend MANA’s current position in this growing segment in addition to its dominance in the production of tractors and all-terrain vehicles. Meanwhile, MANA will continue to provide metro Detroit-based engineering support for new vehicle platform development for India and global markets.

The plant’s inauguration Nov. 20 was attended by senior U.S. lawmakers representing Michigan, local elected officials led by Lt. Gov. Brian Calley, Trump administration officials, scores of business leaders and an international media contingent.

“It’s an amazing privilege for us to be standing here today inaugurating the first auto plant in Detroit in 25 years—the birthplace of the automotive world,” said Anand G. Mahindra, chairman of the Mumbai-based Mahindra Group conglomerate, during the Nov. 20 ribbon-cutting ceremony. “This is an exciting day for Mahindra, our terrific employees and Detroit. I couldn’t be prouder to be here to open this new facility today.” He said the building represents Mahindra’s growing presence in North America and locally in the Metro Detroit area where, he said, the company has tripled its workforce in the last 18 months.

“We are committed to growing the Mahindra brand in North America and Michigan,” he said. He also noted the company would contribute to the resurgence of Detroit.

“What does that mean? It means jobs, it means investment,” he said. “We’ve done $230 million already here and we are going to do a lot more. We’ve already employed about 275 people and many more are coming—on the way—here too by 2020.”

He credited MANA president and CEO Rick Haas and his team with carrying forward the vision for the Detroit plant. “We’ve come in small but bigger than our size, and we recognize that when you give back to the community, that is in fact good business,” he said.

Haas called the expansion “a milestone for us and for Michigan. We started this operation with seven people four years ago—and 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.”

Rajan Wadhera, automotive division executive vice president, said finding a location was a complicated challenge. “We looked at all locations, all over the world, but the final reality was that Michigan made the most sense for all of us—the Detroit area remains one of the world’s greatest automotive centers and offered premier talent. We knew the area had what we needed to be successful in this venture and we knew we’ll get it here in Detroit…The great team of employees that we have in place here have made this vision a reality.”

Wadhera cited Mahindra’s most recent progress: “In the past four years, this team has now completed the first vehicle of our generation—Next, as we call it, the multi-purpose vehicle is going to be launched in India soon and the other markets. They are now beginning to develop a new global platform that will underpin our next generation of products. We gave the team the freedom and to start setting the targets for other strategic opportunities in the United States, and this is what brings us today to this new plant and an off-road vehicle unlike anything on the market today.”

Lt. Gov. Calley said Mahindra has shown a commitment to Detroit since its establishment a few years ago of its Tech Center in Troy. He also commended the company’s practice of including the disabled among its workforce and “being the type of company that is going to take a chance on a person with a disability that often times gets locked out of opportunity. This is following a course of best practices in employment and it pays huge dividends for both the company and the individual that needs the opportunity.”

Rep. Brenda Lawrence (D-Mich.) told the company it was playing a solid role in the city’s comeback. “You have planted your flag right in the heart of metropolitan Detroit area and you have shown your leadership, the investment in this country, and in my part of Detroit Metro area that the opportunities to reinvest.”

The plant’s location was especially significant, according to Rep. Dave Trott (R-Mich.) because it is the birthplace of the automotive industry. “The innovation of this region, the work ethic of the people of this region and the investment of companies like Mahindra really claim that we are the future of the automotive industry as well,” he said.

Tom Vajda, acting deputy assistant secretary of state for South Asian and Central Asian Affairs, said he believed Mahindra’s investment in Detroit was a “milestone” as the first company to make such a commitment in the so-called Motor City in a quarter-century. “It is not only fantastic news for Mahindra and for the local community but it also illustrates the strong partnership between the United States and India,” said Vajda, who was formerly the U.S. Consul General in Mumbai.

“Hundreds of U.S. companies have been present in India for decades and Indian companies and investors look to grow and expand their businesses in the United States and Mahindra is a great example,” he said. “Not only has the company launched this new plant, it also has tractor manufacturing and distribution facilities across the country, built a GenZe electric scooter in Ann Arbor, has IT development centers throughout the United States—in total, 30 facilities representing over $1 billion investment in the United States, and over 3,500 local employees.”

“This is good news for Michigan and the rest of America, good news for India, and good news for our bilateral relationship,” he said.