GUADALAJARA, Mexico (Dec. 17)—Continental A.G. has closed the Guadalajara plant of its Compania Hulera Euzkadi S.A. de C.V. subsidiary, eliminating 1,164 hourly and salaried jobs. Continental blamed the closing on the labor union at the plant, saying nearly two years of "repeated efforts to implement international productivity standards proved ineffective due to internal union politics." Conti said the closing will not affect the commercial viability of the Euzkadi brand or the operations of a second facility in San Luis Potosi. The 29-year-old Guadalajara plant produced 3 million radial car, light and medium truck, and farm tires annually, Conti said. Employees will receive full severance payments according to Mexican law, Conti said.