Michelin announces the closure of its and factories

In the Michelin factory in Saint-Doulchard (Cher), October 27, 2022. GUILLAUME SOUVANT / AFP

The ax has fallen. The tire manufacturer Michelin announced on Tuesday, November 5 at nine a.m. to employees of the (Maine-et-) and (Morbihan) factories the cessation of production on these sites. “no later than the beginning of 2026”. Before their closure, the company is committed to helping the 1,254 employees – 955 in Cholet, 299 in Vannes – find long-term employment.

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Given the age of employees, there will not be many early retirements, management indicates. Since October 16, the Michelin inter-union, annoyed by the silence of managers on the future of these slow-moving factories, had withdrawn from all of the group's work meetings.

How did Florent Menegaux, the president of Michelin, arrive at this decision? “We searched, but we did not find an alternative for these two sites, he explains to Monde. On the other hand, we have found a possibility to make the activity in Joué-lès- viable for a while longer. » The boss of Clermont-Ferrand does not commit to the long term. Since the Covid-19 pandemic, then the war in Ukraine, “the only stable line at Michelin is that things are constantly moving”he warns.

Sluggish market

The difficulties are explained by a sluggish automobile market but also and above all by Asian competition. The Cholet site, specializing in tires for vans and SUVs, was for a time supported by exports, “but in five years, its competitiveness has deteriorated”believes the leader. “For it to move upmarket and produce wider tires, it would have been necessary to change the entire production tool, but other sites of the group already equipped were underloaded”continues Mr. Menegaux. In this segment of tires for light trucks and heavy goods vehicles, Michelin has already announced, at the end of 2023, the closure of three factories in Germany, one in Poland and even two in China.

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“In 2019, our production costs in Asia were 100, while they were 140 in Europe and 135 in America, details the pattern, still a little technical. In 2024, these same costs are still 100 in Asia, while they have increased to 195 in Europe and 190 in America. Today Europe is twice as expensive as China, within the Michelin group. It was even four times before the drop in the price of electricity. Productivity gains cannot compensate for such a difference. » For car manufacturers, the price of energy has relatively little impact on the cost price, but for a company like Michelin, which transforms materials by heating them, it is essential.

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