“Mauricio, we need you to go to Argentina.” So Mauricio Canineo discovered 5 years ago that his new destiny was to lead the local branch of the tire manufacturer Pirelli. The Italian multinational is one of the world’s and national leading brands, together with Fate (owned by the entrepreneur Javier Madanes Quintanilla) and the Japanese Bridgestone, They concentrate 80% of the market.
Canineo was born 64 years ago in São Paulo, Brazil. A graduate in Mechanical Engineering, he has been at Pirelli for 30 years, where he held various positions and the highest offices in Mexico, Venezuela and Colombia. He has been CEO in Argentina since January 2018, a few months before the first major devaluation of Mauricio Macri’s government. Internally, He is recognized as an expert in extremely complex markets.
Are you used to working in complicated environments?
-I always look for a way to adapt to the situation of each country. I was in Venezuela, where we also produce. Laws and governments change constantly. Pirelli has been in Argentina for 112 years, how many crises have there been since then? I experienced hyperinflation in Brazil in the late 90s, with 80% a month. I was in Venezuela which is not easy. I’m not here because it’s easy.
Does an economy so stressed by the lack of dollars and high inflation complicate Pirelli’s development plans?
-Yes and no. I’m not here because this is a beautiful, wonderful country and everything works fine. I’m here because of my previous experiences and because I have to get the operation done. Similarly, the planning is done outside the country and then we see how to produce, because we are an important link in the automotive industry. I’m not saying it’s not complex, nor that I have advantages, but you have to adapt for things to move forward. If we fail, it will impact the automotive industry.
-Did they give you the option to choose Argentina?
-They told me they needed me, because they know me.
-In 2022 there was a big shortage of tires due to a 5-month long union conflict. Bearing in mind that the ties are in July, can the same thing happen this year?
-Last year there was not one conflict, but several, but now it will be different. Honestly, I understand that it shouldn’t be the same, although you have to be the boss of (SUTNA boss, Alejandro) Crespo to be sure of that. I’m not in your head. With everything, whatever happens, we have to get over it.
Pirelli integrates the exclusive club of centenary companies in Argentina. The multinational, an Italian icon in the world, opened its first branch in 1910 and in 1951 opened a factory in the municipality of Merlo, where today 1,600 employees work. Over the past two years, the company has added 400 workers.
In the sector, they estimate that around 12 million tires were shipped in 2022 (23% for 0 km units and the remaining 77% for replacement). Of that total, 8 million were produced in the country.
-How many employees do you expect to incorporate in 2023?
– None at the moment.
-At one point, Toyota warned that it was having enormous difficulty obtaining personnel with a complete secondary education. Have the same problem?
-We are in an area where there are many job offers. We have a community of people ready to join Pirelli, available in the event of an emergency. We could have had some difficulties, but we never stopped producing because we lacked people.
-Last August, Madanes Quintanilla said that the price of a tire in Argentina was an absolute scam and attributed it to import barriers and union conflicts. Is that so?
-The price of a cover is neither high nor low. It’s rational. There is a law to protect the market and I cannot intervene. I can’t argue with it. This is very relative. I have my costs, I work with international standards and I have to be competitive. So if one takes the bill, I make very good money but at the official dollar. It depends on how you get the account. This is very relative and has no definite answer.
-For automakers, Argentina and Brazil are complementary markets. Is it the same for Pirelli?
-The entire productive matrix of the region is complementary. Argentina’s specialty is pick ups. They are robust, spartan and this is a requirement that we must follow from the technological evolution. Whoever buys an Amarok, a Hilux or a Ranger does not have to go to the field. For this reason, the Argentine market is much stronger than the Brazilian one.
-In what sense?
-In volume. For example, all the mining companies that are reactivating the sector. Or the oil industry. It is a niche market that is produced and supplied in Argentina and a part is exported to Brazil. Not only covers for new units: also for replacement.
-When you talk about tackling difficulties and planning for the medium and long term, what projections do you have for 2024 after the elections?
-The industry will consolidate, as it should be. When planning, keep in mind that you can’t have everything under control. It’s farming, the weather is out of control. With all the forecasts out there, not even a wizard could predict the heat wave. The drought has affected not only Argentina: southern Brazil suffers the same. So in 2024, whoever comes, we have to adapt. The occupation does not go away. Toyota has announced it will produce 180,000 vehicles and deliver them. Nissan also started production. Now, we really depend on how the economy is doing in Brazil. The Brazilian market, consumption in that country, must provide the answer.
Expert in complex markets
The Italian multinational Pirelli landed in Argentina in 1910. In 1951 it inaugurated a tire manufacturing plant in Merlo, which today employs 1,600 people. For his part, Mauricio Canineo joined the company more than 30 years ago, held various positions and was CEO in Mexico, Venezuela and Colombia, and arrived in Argentina in 2018, months before the first government devaluation Mauricio Macri . very competitive and very complex markets, such as Argentina: “I’m not here because it’s easy,” he said clarion.
Source: Clarin
