Introduction
Michelin, the renowned French tire manufacturer, has announced the closure of its Querétaro plant by the end of 2025. This decision will affect the 480 employees currently working at this facility, marking Michelin’s first plant in Mexico since its establishment over two decades ago.
The Announcement
In a press release, Michelin explained that the closure decision was a last resort driven by shifts in the passenger car and light truck tire market. The company stated, “Michelin México y Centroamérica has informed employees, customers, the community, and other interested parties that the company will begin to reduce tire production at its Querétaro plant with the goal of concluding industrial operations by the end of 2025.”
Michelin’s Commitment to Employees
The company pledged individual support for each of the 480 affected employees, detailing that they will announce economic indemnification packages and training opportunities in the coming weeks. Michelin also mentioned collaboration with local and state leaders to determine the best support methods, including activities that benefit the state and local community. The company has a sustainable development fund for such purposes.
Reasons Behind the Closure
Michelin’s decision stems from a comprehensive review of its operations, considering the market trend towards larger tires for passenger cars and light trucks. The Querétaro plant lacks the necessary infrastructure to produce these larger tires, making it unfeasible to maintain competitiveness and meet current market demands.
“The plant has become economically and technologically obsolete, making it impossible to transform it into a competitive facility meeting current market requirements,” the company explained.
CEO’s Statement
Matthieu Aubron, CEO of Michelin Region México y Centroamérica, acknowledged the difficulty of this decision. He emphasized that it came after evaluating all possible alternatives and managing the situation with respect and care for affected employees, valuing their contributions. Aubron stated, “This marks the beginning of a new chapter as Michelin continues adapting to current market conditions while maintaining its commitment to Mexico.”
Michelin’s Continued Presence in Mexico
Despite the closure, Michelin will maintain its presence in Querétaro through its corporate headquarters, the Centro de Servicios Corporativos Compartidos (CBS), and its commercial operations, serving automotive, truck, mining, agricultural, and specialized tire lines. The company will also continue its industrial operations in León, Guanajuato.
Merger of Querétaro and León Plants
Following the announcement, Mexico’s Secretary of Economy, Marcelo Ebrard Casaubón, reported that Michelin intends to merge the Querétaro plant with its León facility. This decision aligns with current market demands, ensuring Michelin’s continued commitment to Mexico.
What Does the Querétaro Plant Produce?
The Querétaro plant has produced fewer than 0.5 million BFGoodrich tires annually for passenger cars and light trucks since its establishment in 2002. It also operates a truck tire band renewal workshop.
- The plant was Michelin’s first industrial site in Mexico and has been operational for approximately 23 years.
- Michelin entered the Mexican tire industry in 2002, moving its corporate offices to Querétaro in 2004 to serve the Central American region and other countries through the CBS.
- The León plant was inaugurated in 2016.
Key Questions and Answers
- What is the reason for Michelin’s Querétaro plant closure? The decision results from a market shift towards larger tires for passenger cars and light trucks, which the Querétaro plant cannot accommodate due to insufficient infrastructure.
- How many employees will be affected by the closure? Approximately 480 employees at the Querétaro plant will be impacted.
- What support will Michelin provide to affected employees? Michelin has committed to individual support for each employee, including economic indemnification packages and training opportunities.
- Will Michelin continue its operations in Mexico? Yes, Michelin will maintain its presence through corporate headquarters, commercial operations, and industrial activities in León, Guanajuato.
- What is the status of the Querétaro and León plants merger? Michelin intends to merge the Querétaro plant with its León facility, aligning with current market demands.
