Michelin(R) Brand Tires Now Being Made in Mexico

Queretaro plant converts production line to meet strong Mexican demand

QUERETARO, Mexico, July 12 -- For the first time, Michelin(R)-brand passenger and light truck tires are being built in Mexico. The company announced today that strong consumer demand in Mexico drove Michelin's decision to upgrade production capacity at its Queretaro plant to include Michelin-brand tires.

"In the past three years, Michelin's replacement tire sales in Mexico have jumped more than 60 percent, outpacing the market more than six times," said Jim Micali, chairman and president of Michelin North America. "Mexico is one of the top 10 tire markets in the world, growing at almost twice the rate of the U.S. market. Until today, every Michelin-brand tire sold in Mexico was imported. It is crucial for us to have in-country production to meet the phenomenal demand in Mexico and to increase our total North American capacity for Michelin brand's high-quality tires."

Michelin-brand tires produced in Mexico will feature the same technology and meet the same high-quality standards as Michelin tires made in the United States and around world. "Consumers have extremely high expectations for their Michelin tires," said Micali. "We are confident that every tire that rolls off the line here in Queretaro will live up to those expectations."

Today's announcement was accompanied by the unveiling of a new Michelin sign for the Queretaro facility - proof that it is certified to meet the high quality standards of the Michelin brand.

"This accomplishment reflects the hard work and aggressive learning of a motivated group of manufacturing professionals," said Micali. "Many things are possible when you have good people working hard to make progress and we certainly have that here in Queretaro."

Mexican demand for Michelin tires is growing in other tire segments as well. Two months ago, Michelin announced the construction of a new plant in Queretaro, adjacent to the passenger car tire facility, that will produce tread rubber for retreading Michelin's commercial truck tires. This new facility will open in spring 2007 and bring 120 additional jobs to the city. Currently, Michelin's growing work force in Mexico represents approximately 5 percent of its North American total.

The world's largest tire maker, Michelin (www.michelin.com) designs, manufactures and sells tires for every type of vehicle, including airplanes, automobiles, bicycles, earthmovers, farm equipment, heavy-duty trucks, motorcycles and the space shuttle. The company also publishes travel guides, maps and atlases covering Europe, Asia, Africa and North America. Headquartered in Greenville, S.C., Michelin North America employs 23,330 and operates 20 plants in 16 locations.

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