See the USA in a Mahindra? Indian Automaker to Open Detroit-area Plant, Report Says [UPDATE]

Steph Willems
by Steph Willems

For the company’s sake, hopefully Mahindra & Mahindra’s second attempt to enter the U.S. market won’t go the same way as the first.

The Indian automaker is reportedly planning a 400,000-square-foot assembly plant in the Detroit suburb of Auburn Hills, and has scheduled a press conference with government officials for November 20th. As we all know, local representatives and their higher-ups don’t like braving the cold unless there’s a promise of jobs and cameras.

A previous attempt to tap into the U.S. market went nowhere, ending in a lawsuit. If this plan comes to fruition, it would make Mahindra’s auto plant the first built in the Detroit area in decades — and would provide American consumers with some new SUV options.

According to Automotive News, Mahindra did not include a production timeline in its advisory.

The automaker, one of India’s largest, already operates a technical center in nearby Troy, Michigan. While it remains the world’s largest tractor manufacturer, the company is increasingly anxious to spread its passenger vehicles to new markets. (It also holds out hope of securing the contract for the next U.S. Postal Service mail delivery vehicle.)

Reports in Bloomberg and The Times of India in recent days pointed towards a looming American announcement, though little information was contained within. The Indian publication asserts that Mahindra wants to build sport-utility vehicles at the future Michigan plant.

SUVs are what Americans want, and that just happens to be the automaker’s main focus — overseas, its Bolero, Xylo, XUV500, TUV300, and KUV100 do battle with vehicles in the subcompact to full-size class. With product in the bag, that leaves public interest and regulator certification as Mahindra’s top U.S. concerns.

A decade ago, Mahindra had a dealer network and distributor all lined up. The plan — to sell an imported diesel pickup (subject to the 25 percent “chicken tax”) and other vehicles assembled from tax-avoiding knockdown kits — never came to pass. Dealers pointed the finger at Mahindra, suing the company in 2012, while the automaker accused its U.S. distributor of messing the whole thing up. The case is still working its way through the courts.

Update and correction — The lawsuits were dismissed by the U.S. District Court for the Northern District of Georgia, meaning the legislation has been terminated and is no longer pending. We regret the error.

[Images: Mahindra & Mahindra]

Steph Willems
Steph Willems

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  • Syke Syke on Nov 06, 2017

    If they're willing to start small, there's a very easy way to get going in the US: Every one of your tractor dealers gets the franchise for the SUV's. From what I understand, Mahindra tractors have a good reputation. Now start selling the small trucks to those self-same farmers who are already using them. Build from there. Make sure all your first generation trucklets are actually trucks, not butched-up economy cars. Make sure they're priced right. Under those conditions, they'll sell. A few thousand the first year, but growing every year. Word of mouth from a bunch of happy owners who actually use them like trucks will be great advertising.

  • Oberkanone Oberkanone on Nov 06, 2017

    Complete Knockdown Kit is the only possibility to manufacture in that small of space. Truly assembly only. Not even a paint shop I'd expect.

  • MaintenanceCosts The Truth About Isuzu Troopers!
  • Jalop1991 MC's silence in this thread is absolutely deafening.
  • MaintenanceCosts Spent some time last summer with a slightly older Expedition Max with about 100k miles on the clock, borrowed from a friend for a Colorado mountain trip.It worked pretty well on the trip we used it for. The EcoBoost in this fairly high state of tune has a freight train feeling and just keeps pulling even way up at 12k ft. There is unending space inside; at one point we had six adults, two children, and several people's worth of luggage inside, with room left over. It was comfortable to ride in and well-equipped.But it is huge. My wife refused to drive it because she couldn't get comfortable with the size. I used to be a professional bus driver and it reminded me quite a bit of driving a bus. It was longer than quite a few parking spots. Fortunately, the trip didn't involve anything more urban than Denver suburbs, so the size didn't cause any real problems, but it reminded me that I don't really want such a behemoth as a daily driver.
  • Jalop1991 It seems to me this opens GM to start substituting parts and making changes without telling anyone, AND without breaking any agreements with Allison. Or does no one remember Ignitionswitchgate?At the core of the problem is a part in the vehicle's ignition switch that is 1.6 millimeters less "springy" than it should be. Because this part produces weaker tension, ignition keys in the cars may turn off the engine if shaken just the right way...2001: GM detects the defect during pre-production testing of the Saturn Ion.2003: A service technician closes an inquiry into a stalling Saturn Ion after changing the key ring and noticing the problem was fixed.2004: GM recognizes the defect again as the Chevrolet Cobalt replaces the Cavalier.fast forward through the denials, driver deaths, and government bailouts2012: GM identifies four crashes and four corresponding fatalities (all involving 2004 Saturn Ions) along with six other injuries from four other crashes attributable to the defect.Sept. 4, 2012: GM reports August 2012 sales were up 10 percent from the previous year, with Chevrolet passenger car sales up 25 percent.June 2013: A deposition by a Cobalt program engineer says the company made a "business decision not to fix this problem," raising questions of whether GM consciously decided to launch the Cobalt despite knowing of a defect.Dec. 9, 2013: Treasury Secretary Jacob Lew announces the government had sold the last of what was previously a 60 percent stake in GM, ending the bailout. The bailout had cost taxpayers $10 billion on a $49.5 billion investment.End of 2013: GM determines that the faulty ignition switch is to blame for at least 31 crashes and 13 deaths.It took over 10 years for GM to admit fault.And all because an engineer decided to trim a pin by tenths of a millimeter, without testing and without getting anyone else's approval.Fast forward to 2026, and the Allison name is no longer affiliated with the transmissions. You do the math.
  • Normie I'd hate to have to actually use that awkwardly mounted spare tire in a roadside fix scenario. Bumper jack? Tote around a 50 lb. floor jack? That's a high ridin' buggy!
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