Fiat Chrysler has also said that Roxor imports threaten it with substantial injury as they are underselling Jeeps. Mahindra capitalizes on the cost advantages of manufacturing their products in India and then importing knocked-down kits to the US , where they’re assembled in the Detroit area.
Fiat Chrysler has become increasingly reliant on its Jeep product line. On Wednesday, the company reported its highest ever July sales for Jeep brand vehicles, up 16 percent, to power the company’s overall 5.9 percent jump from a year ago.
Mahindra announced plans in November to invest $600 million in its Roxor manufacturing facility. The Michigan unit tripled its workforce and by 2020, the group plans to employ as many as 670 workers there. Fiat Chrysler’s complaint pointed to Mahindra’s “substantial foreign manufacturing capacity combined with its demonstrated intention to penetrate the United States market and harm FCA’s goodwill and business.”
The case is In the Matter of Certain Motorized Vehicles and Components Thereof, Complaint No. 3330, US International Trade Commission (Washington)