Pirelli has plans to make a significant investment to set up a production base in Mexico, the company’s CEO has been quoted saying.

Marco Tronchetti Provera has told the Financial Times that whilst it made sense to supply Latin America from bases in Brazil and Argentina, it was sensible to supply America from a country within NAFTA (the North American Free Trade Agreement).

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“For us it is more convenient to invest in Mexico because there are many carmakers investing there,” he said. Lower labour costs in Mexico were another factor, he added.

The plans for Mexico are not yet finalised.

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