RALEIGH – North Carolina is in the running for a vehicle manufacturing plant, this time by India-based Mahindra Automotive.
Also under consideration are Michigan, South Carolina, Texas and Arizona, a company spokesperson tells WRAL TechWire.
However, the building of a plant comes with a big caveat: Mahindra is counting on winning a $6 billion contract to build the USPS “Next Generation Delivery Vehicle.” But the spokesperson said winning the USPS contract is not necessary for the building of a new plant.
“We have a product plan that is broader than just the USPS truck,” said Mahindra’s Richard Ansell.
There’s plenty of competition for the plant from several states, however.
Plus, the company is looking for financial incentives from states it says are being considered.
Mahindra North America HQ in Michigan
“Mahindra also is in discussion with several other states that have suitable sites,” the firm explained. It then specifically referred to incentives in comments directed at Michigan leaders.
“The decision about where to make this substantial investment will be driven in part by the financial incentives that are available from the State of Michigan,” the statement said.
And there is competition for the USPS deal, which the firm says would include some 2,000 jobs in the first year of operation. More would be added later, a press announcement said.
“Mahindra is one of five companies short-listed for the contract award, which is expected to be announced later this year,” the company said Thursday.
$1 billion plant
Rick Hass, the CEO of Mahindra North America, told Automotive News that the company’s plan includes “construction of a 1 million-square-foot facility with expectations to build another 1 million square feet in the future.” The investment would be around $1 billion, the website said, citing data from Crain’s Detroit Business.
Hass also told CNBC that a Michigan site makes sense.
“While we’re keeping our options open, we think the former Buick City site in Flint would be a great fit for us,” he explained. “It’s close to our current facility, which improves overall enterprise efficiency.”
The firm, which bases its North American headquarters and already operates a plant in Michigan, also topped its press release with a disclosure that it is evaluating a former Buick plant site in Flint, Mich. as the new plant location.
“Mahindra’s current manufacturing facility in Auburn Hills, Michigan is at capacity, and a significant facility expansion is envisioned to support manufacturing and assembly of new products for the US market,” the company said.
More vehicles in pipeline
The firm noted further that the engineering team at Auburn Hills “is leading the development of Mahindra’s next generation global vehicle platform.”
A new plant also would “house production for a number of future products that have not been announced publicly,” Mahindra added.
“Winning the USPS contract is a key element of our growth strategy but it’s only a piece of what we have planned,”Haas said in a statement. “We have a long-term product plan and we believe the former Buick City site in Flint is a strong contender for what would essentially be Mahindra’s first large scale manufacturing operation in the United States.”
North Carolina has been in the running for auto plants before and has plans to accommodate a large site for such a facility.
The state also is prepared to offer a significant package of tax incentives based on legislation passed to help land a transformative project.
Mahindra builds its Roxor off-road and recreational vehicle in Auburn Hills. The firm has operated at Auburn Hills since 2013.
The company generates more than $20 billion in revenue and says it is the world’s largest tractor company “by volume.” It employs more than 200,000 people across 100 countries.
