Goodyear to spend US$550 million on tire plant in Mexico
Goodyear is expected to announce the investment at a joint event with the government on Friday in Mexico City. (Photo: Reuters )
Goodyear Tire &
Rubber Co. is planning to spend US$550 million on a new tire plant in Mexico, a
person familiar with the matter said, the latest in a string of investment
pledges in the country's booming auto sector.
The Goodyear plant, which
will begin operations in 2017, will produce tires primarily for the domestic
market, said the person, who declined to be named as the investment was not yet
public.
The company is expected to announce
the investment at a joint event with the government on Friday in Mexico City,
the person said. Goodyear spokesman Eduardo Argüelles declined to comment.
The investment comes shortly after
automakers Toyota , Ford and Volkswagen unveiled major expansion plans in
Mexico, taking advantage of Mexico's low wages, free trade agreements and
proximity to the United States.
Last week, Toyota said it would
spend US$1 billion on a passenger car plant, and Ford said it would spend US$2.5
billion on engine and transmission operations. German Volkswagen said last
month it will invest about US$1 billion to expand its vehicle assembly plant in
Mexico's Puebla state.