Mahindra has reportedly cut more than half the strength of his North American unit due to the COVID-19 pandemic and an ongoing legal fight.
According to some reports, “hundreds of workers” have been made redundant since mid-2020 as part of a restructuring
Indian automaker Mahindra & Mahindra Ltd has cut more than half of its North American unit’s workforce, two sources familiar with the matter told Reuters, due to the COVID-19 pandemic and an ongoing legal fight . The sources did not give a figure on how many jobs were lost at the company, which had more than 500 employees at the start of 2020, according to its website. However, one of the sources said that “hundreds of workers” had been made redundant since mid-2020 as part of a restructuring, and that the cuts reached two-thirds of Mahindra Automotive North America’s total workforce. (MANA).
The positions include engineers and manufacturing jobs at its Detroit plant that produces the Roxor all-terrain vehicle, as well as sales executives. The cuts come as Mahindra examines its business with the aim of conserving capital and only retaining those that are making money or have the potential to be profitable. MANA said in a statement it had fired some staff and fired others due to the pandemic and a lawsuit by the International Trade Commission that led to a “cease and desist” order. August for Roxor’s business. He did not provide any figures.
Mahindra and Fiat Chrysler Automobiles (FCA) are in a long legal battle over an intellectual property infringement case that has prevented the Indian automaker from selling its Roxor vehicle in the United States. “This required us to stop production and lay off our manufacturing team and a few additional people for several functions, including the Roxor sales team,” the company said. However, last month the company secured a favorable ruling in its lawsuit against the FCA, clearing the way for it to resume selling the Roxor. He now expects to recall a large group of employees, he said in the statement.
As part of his review, which began last year, Mahindra unplugged his US electric scooter company GenZe; it is in talks to sell its stake in South Korean automaker Ssangyong Motor; and he canceled a joint venture with Ford Motor Co.
Mahindra shares have jumped more than 60% since the review was announced in June last year, valuing the company at more than $ 12.6 billion.
The automaker plans to focus on manufacturing large sport utility vehicles and electric models for its core market of India, where it has lost ground to rivals such as Tata Motors and Kia Motors.
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