Mumbai, August 9: Indian automotive major Mahindra & Mahindra's Mahindra Automotive North America (MANA) has recently sighed a letter of intent (LoI) with the RACER Trust and is mulling setting up a plant in Michigan in the United States of America. The facility is likely to open in Flint, where the manufacture of small delivery trucks - 1,80,000 units - for the United States Postal Service (USPS) is expected.
According to reports, the cost of each truck - if the contract comes through - would be between USD 25,000 and USD 35,000 (Rs 17.6 lakh and Rs 24.6 lakh) and the job is worth USD 6.3 billion (Rs 44,400 crore). As per the estimate, the truck-supply contract will be spread over five years. Mukesh Ambani's RIL Signs Deal to Bring Iconic Jewellery Brand Tiffany & Co to India
Informing more about the development, Mahindra said in a statement on Thursday, "The plant would also house production for a number of future products that have not been announced publicly. It is projected the plant will create up to 2,000 jobs over the first five years with additional jobs to follow."
While about the plant, president and CEO of Mahindra Automotive North America, Rick Haas, stated, "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."
It is to be known that RACER Trust was created in March 2011 by the US bankruptcy court to clean up and offer for redevelopment properties and other facilities owned by the General Motors Corp before its 2009 bankruptcy, reports Money Control. Mahindra is one of the five companies shortlisted for the contract expected to be awarded later this year.