Background on Michelin and its Relevance
Michelin, a globally recognized tire manufacturer with French origins, has been a significant player in the automotive industry for over a century. The company operates in more than 170 countries, providing tires for passenger cars, SUVs, trucks, and other vehicles. Michelin’s commitment to innovation and sustainability has earned it a reputation as a leader in the tire industry.
The Announcement and Reasons for Closure
Michelin México y Centroamérica, a subsidiary of the French tire manufacturer, announced the closure of its tire plant in Querétaro, Mexico. The decision stems from the plant becoming economically and technologically obsolete, particularly for producing larger-sized tires that are increasingly in demand.
The market trend for passenger cars and light trucks is shifting towards larger tire sizes. Unfortunately, the Querétaro plant lacks the necessary infrastructure to produce these larger tires. As a result, Michelin decided that maintaining and upgrading the outdated facility would not be feasible or economically viable.
Impact on Employees
The closure will affect approximately 480 employees at the Querétaro plant. Michelin has committed to supporting these workers through various measures, including financial compensation packages, assistance in finding new employment opportunities, and external training programs to enhance their skills according to current market demands.
The company aims to manage this transition with the utmost respect and care for its affected employees, acknowledging their valuable contributions. Michelin’s CEO, Matthieu Aubron, emphasized that this decision marks the beginning of a new chapter as the company continues to adapt to market conditions while maintaining its commitment to Mexico.
Production and Continued Operations
Michelin will gradually reduce its tire production in Querétaro throughout the second half of 2025, eventually ceasing industrial operations by year-end. However, the company will continue producing tires at its León plant in Guanajuato, one of Michelin’s most modern manufacturing facilities.
The Querétaro plant currently produces around half a million BFGoodrich tires annually for passenger cars and light trucks. It also houses a production workshop for renewing truck tire bands.
Key Questions and Answers
- What is the reason for closing the Michelin plant in Querétaro? The plant has become obsolete from both economic and technological perspectives, making it unfeasible to modernize and meet current market demands for larger tire sizes.
- How many employees will be affected by the closure? Approximately 480 employees at the Querétaro plant will be impacted by this decision.
- What support will Michelin provide to affected employees? Michelin has committed to offering financial compensation packages, assistance in finding new employment opportunities, and external training programs to enhance workers’ skills according to current market demands.
- Will Michelin continue producing tires in Mexico? Yes, Michelin will maintain its tire production at the León plant in Guanajuato, one of its most modern manufacturing facilities.
