Michelin, the tire and component manufacturer, announced that it will close its Querétaro plant by the end of 2025, a decision that will impact the company’s 480 employees at this operations center. This is the first plant the company has established in Mexico.
In a press release, the French company argued that the closure decision was a last resort and was motivated by changes in the passenger car and light truck tire market.
After more than two decades of operation, this plant will reduce production until it closes operations at the end of this year.
“Michelin Mexico and Central America has informed employees, customers, the community, and other stakeholders that the company will begin reducing tire production at its Querétaro plant, with the goal of ending its industrial operations by the end of 2025,” it stated.
In the letter, it pledged to individually support each employee for their future; The company added that information regarding the severance package and a training offer will be provided in the coming weeks.
The company also specified that it has made the decision to halt production at the Querétaro plant to allow management time (this week) to engage in collective discussions with the workers, who participated in an initial briefing.
“In line with Michelin’s values, the company is committed to supporting each of the 480 impacted employees for their future. Support measures will be announced in the coming weeks, including the severance package and benefits, assistance with preparing for a new job search, and an external training offer to improve or acquire new skills that will increase their employability in line with labor market demands,” it stated.
The company, the statement stated, will collaborate with local and state leaders to determine the best way to provide support, even after the transition. It also noted that it has a fund for the development of sustainable activities for the benefit of the state and the local community.
Reason for the Closure
The company explained that the decision to close the plant is the result of a thorough review of its operations, considering that the market trend for passenger cars and light trucks is moving toward larger tire sizes, and the plant lacks the infrastructure required to produce them.
“The plant has become economically and technologically obsolete, making it unviable to convert it into a competitive facility that meets current market demands,” it stated.
In a statement, Matthieu Aubron, CEO of Michelin’s Mexico and Central America Region, emphasized that the closure of the plant—the firm’s first in Mexico—has been one of the most difficult decisions the company has ever made.
“This decision was made after evaluating all possible alternatives. We are managing it with the highest level of respect and care for our impacted employees and deeply value their contributions. This marks the beginning of a new chapter as Michelin continues to adapt to current market conditions and maintain its commitment to Mexico,” he said.
Meanwhile, it will continue operations at its corporate headquarters in Querétaro, including its Corporate Shared Services (CBS) Center and its commercial operations, serving its automotive, truck, mining, agricultural, and specialty tire business lines, as well as its expertise in Mexico and Central America. It also noted that its industrial operations at the plant in León, Guanajuato, will continue.
Maintains Presence
Following the company’s announcement, Economy Secretary Marcelo Ebrard Casaubón announced that Michelin has informed the agency that it will merge the Querétaro plant with its León plant.
“Michelin informed the Ministry of Economy that it has decided to merge the Querétaro plant with the one it has in León, Guanajuato. The merger is due to the fact that the latter produces the most suitable tires for our country’s current market. Michelin maintains its presence and commitment to Mexico,” it published on its social media platforms.
What does the plant produce?
Currently, the Querétaro plant produces fewer than 0.5 million BFGoodrich brand tires annually for passenger cars and light trucks. It also operates a production workshop for retreading tires for truck tires.
Source: eleconomista
