Pirelli officially responds to US expansion

Under Trump's series of tariff operations, the tire production capacity in the United States has gradually changed. Recently, it was reported that Pirelli is discussing expanding production in the United States to promote its localized operation strategy under tariff fluctuations. However, it is unknown whether the capacity increase can really be put on the agenda.

01 Pirelli's expansion in the United States is pending

On April 11, 2025, Pirelli said that it had considered expanding production in the United States for some time, but because its shareholder structure problem has not been resolved, the increase in US production capacity is pending. This is a response to the previous rumor that Pirelli will invest $1 billion to expand production capacity in Rome, Georgia. Indeed, Pirelli hopes to better cooperate with its localization strategy by increasing its domestic production capacity in the United States, but because its shareholder structure problem has not been resolved, it is currently unable to make new investments in US production capacity.

Pirelli said that "given the regulatory barriers related to governance and shareholder structure issues, Pirelli has not made any decision on its investment in US production capacity at present," and Pirelli added that it is currently evaluating and analyzing the investment with its major shareholder Sinochem Group. In March 2025, Pirelli postponed key board resolutions and rescheduled its annual shareholders' meeting due to "efforts to resolve US market regulatory issues."

Pirelli CEO Andrea Casaluci said that Pirelli management is working hard to find a solution "to enable Pirelli to adapt to the new regulations of the US market." It is reported that the problems Pirelli faces in the region include those related to its largest shareholder, Sinochem Group of China, which currently holds a 37% stake in Milan Tire Group. The current US market is increasingly strengthening the review and restrictions on China-related software and hardware used on US roads.

02 Pirelli's US factory has a production capacity of 400,000 tires

According to statistics from foreign media agencies, Pirelli has 2 tire factories in North America, located in Mexico and the United States, with a total annual production capacity of approximately 6.8 million tires, of which Mexico is the main supplier of tires in North America. Although finished products shipped from Canada and Mexico to the United States that comply with the USMCA agreement will be exempt from import tariffs, the current changes in US tariffs are still highly uncertain, and it seems imperative to increase the production capacity of domestic factories in the United States.

Especially when Pirelli's US factory currently has an annual production capacity of only 400,000 tires, its direct supply capacity to the US market is not strong. In fact, 40% of Pirelli's tire supply to the US market comes from factories in Europe and Brazil. However, the "reciprocal tariff" this time, the US charges Europe a high fee, and Pirelli plans to increase the supply of Brazilian factories to the US market. But in the long run, the increase in domestic supply in the United States should be a more important driving force for its localization strategy.