Michelin not rethinking new plant in Mexico

Michelin is not rethinking plans for a new tire factory in Mexico despite pressure by President-elect Donald Trump on companies to steer production to the United States, the company's president said Tuesday.

"The decision to build the factory in Mexico was made some years ago," Michelin President Jean-Dominique Senard told AFP on the sidelines of the annual Detroit auto show.

"We're going where our clients are. Our business is global, and we aren't reconsidering Mexico."

French tire giant in July announced plans to build a plant in central Mexico focused on high-end tires, an investment worth 450 million euros, or about $475 million at the current exchange rate.

Michelin said the plant, located in Guanajuato state and expected to be ready at the end of 2018, would produce four to five million tires to address growing demand in Mexico and "growth opportunities in the dynamic North American market."

The factory, Michelin's 21st in North America, "reflects Michelin's commitment to producing its tires as close as possible to the markets in which they are sold," the company said at the time.

Ford last week spiked plans to build a new $1.6 billion plant in Mexico and instead announced new US investment. And Fiat Chrysler announced Sunday it was adding 2,000 jobs in the United States.

The moves were praised by Trump, who has threatened to impose tariffs on cars exported from Mexico to the US market.

"What's important is to realize that we have 18,500 employees in the United States who work for Michelin," Senard said. "We have 15 plants here."

"We have plans to grow our presence in this region, in particular in the US. There is no reason to change our plans."