On Wednesday Reuters news agency, citing a person familiar to the matter, reported that Goodyear Tire & Co. is planning on spending $550 million on a new tire plant which is to be built in Mexico. If indeed the move is true, this will be another pledge that has emerged in a string of investment pledges in the booming auto sector in the country.
The plant, which is set to begin operations come 2017, is said to be producing tires primarily for the domestic market, the person said. When reached for a comment, Goodyear’s spokesman, Eduardo Arguelles, refused to comment.
This news just comes months after other car manufacturers have announced that they will be expanding their production in Mexico by building new plants. Ford, Toyota, and Volkswagen are some of the car makers which have formally announced that they will be expanding in Mexico in the coming years, taking advantage of the country’s low wages, proximity to the U.S. and lastly free trade agreements.
Last week Toyota revealed that it would be spending an estimated $1 billion on a passenger car plant which is to be constructed in Mexico. Ford also made similar remarks, stating that it will be spending an estimated $2.5 billion on transitions and engine operations. Last month Volkswagen revealed that it will be investing at least $1 billion so as to expand its vehicle assembly plant which is based in Mexico’s Puebla state.