Mahindra signals plans for 400,000-square-foot auto plant in Detroit area

DETROIT -- India's Mahindra & Mahindra Ltd. on Thursday said it plans to build a 400,000-square-foot auto assembly plant near Detroit, which would be the first new auto plant in the region in more than 25 years.

The global manufacturer has scheduled a press conference for Nov. 20 in the Detroit suburb of Auburn Hills, Mich., with local political leaders, according to an advisory sent by Mahindra North America. 

U.S. Secretary of State Rex Tillerson hinted at Mahindra’s plans on Oct. 25 in New Delhi, Bloomberg reported. Mahindra plans to build off-road utility vehicles in the plant, The Times of India reported at the time. Mahindra's advisory didn't indicate when production would begin.

Mahindra has been attempting to enter the U.S. automotive market for more than 10 years, which included plans for a pickup truck and a possible retail network of more than 300 dealers. But those plans  and . 

Mahindra attempted to enter the U.S. automotive market in 2006, with plans for independent distributor Global Vehicles U.S.A. of suburban Atlanta to sell compact diesel pickups imported from India through a retail network of more than 300 dealers. But that plan collapsed in 2010 and resulted in years of litigation.

(Note: A statement sent to Automotive News on Nov. 7 by the Atlanta law firm representing Mahindra -- King & Spalding LLP -- said that all of the lawsuits filed against Mahindra arising out of the effort to distribute vehicles through Global Vehicles have been dismissed.

John Perez, who created Global Vehicles to sell Mahindra vehicles, said by email that he and many of the original dealers who signed up for the brand welcome the news of Mahindra producing vehicles in the United States. Mahindra has maintained since 2010 that it no longer has a contract with Global Vehicles.)

Dealers sued Mahindra in 2012, claiming the automaker "pocketed more than $9.5 million, more than a $100 million worth of dealer trade secrets to utilize for their future entrance into the U.S. market, and a strong market foundation gained at the expense of the dealers' 'free' promotion of Mahindra's brand name around the U.S."

Mahindra denied the dealers' claims, placing blame for the failure of plans to sell its pickups here on its former U.S. distributor.

In 2013, Mahindra established its North American automotive headquarters in Troy, Mich., which includes design, engineering and vehicle development. Then in 2014, Mahinda announced plans to expand its technical center, adding about 110 engineering jobs.