Is Yokohama planning a tyre plant in Mexico?
Following the news that Yokohama established a Mexican subsidiary, Yokohama Tire Mexico S. de R.L., local news reports suggest the tyre manufacturer is planning to use this company to build a passenger car tyre production plant in Silao, Guanajuato, Mexico. According to El Economista newspaper, the plan is for the plant to provide tyres to Honda and Mazda auto plants in the region, as well as for the North American replacement market.
The Spanish-language newspaper reported: “The Secretary for Economic Development and Sustainablity Santillana Hector Lopez confirmed the installation of the Japanese tyre shop in Silao,” but he did not specify an exact location within the region.
However he did say that “…in the coming days [they] will make the official announcement of this new investment.” However, such positivity could also be read as political grandstanding on the part of the local authorities designed to draw attention to inward investment in the country. And there’s always the chance that something got lost in translation.
Nevertheless the fact that Yokohama Rubber Co. recently created a full-fledged subsidiary company in Mexico – Yokohama Tire Mexico S. de R.L. de C.V. and appointment a former head of its US business, Gary Nash, which will be based in Silao and will be fully operational in May makes it an interesting thesis. Of course a Mexican plant brings with it NAFTA free-trade benefits and logistical advantages for the emerging South American markets.
Yokohama said that had it previously served the Mexico market – consumer, commercial and OTR – through its US unit. It now plans to “use the new company to expand its market presence in Mexico by providing direct sales, customer service and efficient distribution channels.” However insiders played down the Mexican newspaper reports, highlighted the official line from Japan –it is simply a subsidiary distribution company – and told Tyres & Accessories that the company doesn’t even have a warehouse yet, let alone a factory. For them it is first things first establish a headquarters and build a team in the area.
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