HANOVER, Germany (Nov. 5)—Continental A.G. may be forced to close one of its two tire plants in Mexico unless losses by the business there can be turned around, company executives said recently. Company spokesmen emphasized no decision has been taken yet, but acknowledged the firm is reviewing all aspects of the Mexican business, as well as its commercial truck tire business in Europe and some of its non-tire assets. Continental Tire de Mexico S.A. de C.V. operates two plants, in Guadalajara and San Luis Potosi, with about 1,500 and 1,000 employees, respectively. Both facilities make passenger, light and medium truck, and farm tires, with a combined daily capacity of about 28,000 units. Continental Tire has an estimated market share in Mexico of about one-third, with the Continental, General and Euzkadi brands. Earlier this year, Conti said it planned to revamp its manufacturing in North America to reflect the European model, where cheaper, entry-level auto tires are made in low-cost Eastern European countries.
Continental may close Mexican tire plant
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