Under the effect of rising energy costs and Asian competition, the automotive supplier Michelin confirms the closure of two of its French factories by 2026. 1,254 employees are affected by this decision, which reflects a context increasingly strained European economy for the sector.
An automotive sector under pressure in Europe
The announcement came as a blow to employees at Michelin sites in Cholet, in Maine-et-Loire, and Vannes, in Morbihan. The group confirmed that production in these two factories would permanently cease “ no later than the beginning of 2026 », a decision which will affect 1,254 employees, including 300 in Vannes and 963 in Cholet. In Vannes, employees manufacture metal bead wires for heavy goods vehicle tires, while in Cholet, employees produce tires for utility vehicles.
Faced with this decision, the general director of Michelin, Florent Ménégaux, recognized the considerable human impact. “ This is obviously a shock for the employees », he affirmed, while promising personalized support for each employee in order to facilitate their professional transition. Pre-retirement measures and internal and external mobility will be offered, as was the case during the last closure in 2019, in La Roche-sur-Yon. This precedent, underlines Ménégaux, allowed 614 of the 618 employees concerned to find work in the year following the closure, a model that the group hopes to reproduce.
For Michelin, the closure of these two sites is the result of a difficult economic context in Europe, marked by an increase in production costs. The group particularly points to the surge in energy prices, which are today twice as high in Europe as in the United States or Asia. This situation makes production in European factories less competitive compared to Asian players who practice lower costs, particularly in the market for tires for commercial vehicles and heavy goods vehicles.
Michelin’s commitment to local employment despite the closure
« Our manufacturing costs in Europe have doubled since 2019 », Indicates Florent Ménégaux, a situation made worse by salary inflation. Michelin management claims to have studied all possible alternatives before considering the closure of the two factories. However, in a sector where globalization imposes constant pressure, Michelin considers this restructuring inevitable to remain competitive.. A provision of 330 million euros will be entered in the accounts in December 2024 to cover the costs of this reorganization.
Michelin is, however, committed to compensating for these job losses by supporting the development of new activities on closed sites, as was done in La Roche-sur-Yon, where a park dedicated to mobility helped revitalize the area. “We will help create at least the same number of jobs on both sites,” promises Florent Ménégaux.
The group also recalls that it remains a major employer in France, with 19,000 employees in the country, including 9,000 in fifteen factories spread across the territory. However, the general manager tempers any guarantees about long-term job stability. “ In a globalized market like ours, guaranteeing employment would be irresponsible “, he believes.