Following recent media reports that claimed Mahindra has cut more than half of the workforce at its North American unit, the company has now confirmed to carandbike that the unit is going through a restructuring process. The company said that Mahindra Automotive North America or MANA, is currently evaluating options for making the organisation leaner and optimising performance and productivity. Replying to our email, a Mahindra spokesperson said, "Given the current circumstances, MANA has combined some of the job roles and has taken the most difficult decision to reduce the resultant redundant job roles."
Earlier reports suggested that the cuts were as high as two-thirds of the total staffing. Now, Mahindra is reportedly reviewing its businesses in a drive to conserve capital and retain only those that make money or have the potential to be profitable. In fact, in the company's statement, the Mahindra spokesperson said, "At Mahindra Automotive North America, we chose not to bid for the USPS Next Generation Delivery Vehicle program and some of the non-core work has also been de-prioritized."
Mahindra has also been in a long legal battle with Fiat Chrysler Automobiles (FCA), following the latter's claim that the Roxor off-road SUV violates the "trade dress" of FCA's Jeep Wrangler SUV. However, since then Mahindra has made several changes to the design of its vehicle, and in December 2020, a U.S. regulator ruled that Mahindra's new design for the Roxor does not infringe the intellectual property rights of FCA's Jeep brand. So, given the fact that the company is now allowed to sell the Roxor in the United States, MANA is shifting its focus towards the launch of the 2021 model.
Hinting at the possibility of hiring new personnel for the for its upcoming projects the Mahindra spokesperson said, "The Detroit centre will continue the future-ready work on new, 'Born Electric' platforms and is preparing for the launch of the New Roxor 2021, for which we continue to retain as well as bring in new and relevant skilled talent." Additionally, talking about other MANA projects, the spokesperson also said, "Design and engineering work on a new vehicle codenamed Z101 is now completed as the product readies to be launched in India." As we already know, Z101 is the codename for the new-gen Mahindra Scorpio, which is slated to be launched in India in Financial Year 2021-22.