Tire production giant, Michelin, announces plant closure in Querétaro
In a significant move, Michelin, the renowned French tyre manufacturer, has announced the closure of its Queretaro plant in Mexico and the subsequent relocation of operations to León, Guanajuato. The decision comes as a response to the challenges faced in sustaining operations amid fluctuating demand and external trade barriers.
The Queretaro plant, with a production capacity of around 500,000 units annually, will be closing its doors by the end of 2025. This move is part of Michelin's broader strategy to consolidate and expand production facilities for improved efficiency and financial viability.
The closure will result in approximately 480 job losses in Queretaro. However, operations will continue and expand at the León plant, a strategic shift that suggests a location better suited for higher volume and possibly lower costs or better logistics.
The company will begin reducing tire production at the Queretaro plant this year. Currently, the plant produces fewer than 0.5 million BFGoodrich brand tires per year for passenger cars and light trucks. The Queretaro plant also has a production shop for retreading treads for truck tires.
The decision to close the Queretaro plant was a "last resort" driven by changes in the passenger car and light truck tire market. It was one of the most difficult decisions made by the company's CEO for the Mexico and Central America region.
Michelin has assured that it will support the 480 employees affected by the plant closure. Financial severance packages, assistance in job searches, and external training will be provided to help them navigate this transition.
The closure of the Michelin plant reflects both market pressures and a corporate strategy to optimise production by focusing on more scalable or strategically located facilities in Mexico. This move aligns with multinational trends to consolidate manufacturing to remain competitive amid volatile market conditions, including tariffs, trade uncertainties, and shifting automotive demand.
Read also:
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
- Unveiling Innovation in Propulsion: A Deep Dive into the Advantages and Obstacles of Magnetic Engines
- Intensified farm machinery emissions posing challenges to China's net-zero targets
- EU Fuel Ban Alerts Mercedes Boss of Potential Crisis
