M &M withdraws bid for US postal trucks
Mahindra Automotive North America (MANA) was one of the four shortlisted bidders for the project four years ago. Winning the bid would have required M&M to invest around $500 million in MANA.
Mumbai / Michigan- Mumbai based Mahindra & Mahindra’s North American business unit, Mahindra Automotive North America (MANA)1 will not pursue the bid to supply delivery vehicles to United States Postal Service (USPS) due to their revision in investment plans by its parent organization.
MANA was one of the four shortlisted bidders for the project four years ago. Winning the bid would have required M&M to invest around $500 million in MANA.
MANA has been involved in a litigation filed by Fiat Chrysler Automobiles, over alleged design infringement. It is to be noted that M&M is conducting a detailed analysis throughout this year, of all its businesses to take calls regarding continuation of some of its businesses.
Anish Shah, deputy MD and Group CFO, M&M. said “Some investments” made already are being written off. The decision to withdraw from the bid is part of the Group’s efforts to take measures that enhance its financial sustainability. “MANA business itself right now has cloud with regard to the FCA litigation. That’s a business that, once that cloud clears, will have a better view in terms of what is the roadmap for it, and is part of our overall evaluation,
1Mahindra Automotive North America (MANA) is Mahindra’s North American automotive headquarters located in Auburn Hills, MI. In addition to leading all North America activity, MANA is a comprehensive automotive design, engineering and vehicle development center. Established in 2013, in Troy, Michigan, MANA’s team of veteran executives, engineers and designers working with affiliate Mahindra automotive teams in India, Korea and Italy, is playing a key role in growing Mahindra’s global automotive business.
