Joining the band of global automakers that have invested heavily into the sprawling Mexican auto industry comes US company Goodyear Tire & Rubber Co, according to the latest report.
According to a person that has knowledge of the matter, Goodyear Tire & Rubber Co, a supplier of tires and associated services is mulling the investment of $550 million, to be spent on the construction of a new tire factory in Mexico. The new plant, to become operational starting with 2017, will output tires mostly for the Mexican internal market, said the source, which declined to reveal his identity ahead of the public announcement of the planned investment strategy. The firm will move to officially publicize the investment this Friday during an event with the participation of government officials in Mexico City. Suppliers such as Goodyear are naturally relocating to Mexico as they follow the investment trail of global automakers – all flocking to the country’s rapidly growing auto industry. Mexico has been attracting auto investors thanks to its cheap labor market, strategic geographical position in close proximity to the US market and between South and North America, as well as a string of free-trade agreements with numerous regions across the globe.
The investment also follows recent announcements by automakers such as Toyota, Ford and Volkswagen – with the latter two reporting major expansion plans of existing facilities. Last week, Toyota, the world’s largest automaker, also said it would pledge one billion dollars to construct a new factory in Mexico – its first passenger car plant in the country.