How did Michelin, the flagship of French industry, end up closing so many factories?

How did Michelin, the flagship of French industry, end up closing so many factories?
How did Michelin, the flagship of French industry, end up closing so many factories?

Symbol of French industry and world flagship of tires, Michelin has been in turmoil for several months. In recent years, the company has significantly reduced its industrial footprint in , closing many historic sites to tackle major economic and environmental challenges.

A series of closures which mark the French territory

This week, the Clermont-based group announced the upcoming closure of two factories in France, in and . This decision, justified by the drop in activity in the truck and van tire sectoris far from being an isolated case. Michelin has already ceased its activities on several French sites: (2006), Toul (2008), Joué-lès- (2014) and La Roche-sur-Yon (2020), thus leading to a series of layoffs.
The objective is clear for the group: optimize costs and refocus its activities towards the most profitable sites. Michelin, however, assured, through its CEO Florent Menegaux, that each closure would be accompanied by social measures to support employees in retraining. “We will not leave anyone behind“, he said, referring to the company's social heritage.

A group with a deeply rooted social heritage

Founded in 1889 in Clermont-Ferrand by Édouard Michelin, the company began with 52 workers manufacturing brake pads for bicycles. During the 20thth century, Michelin became a pillar of French industry and supported the development of automobiles, becoming one of the most emblematic French multinationals. The “Bibendum”, the company's historic mascot, has become one of the best-known logos in the world.
Beyond its products, the company has distinguished itself through a deep social commitment. Édouard Michelin implemented a paternalistic model by developing schools, cooperatives and garden cities for his workers, thus forming a real urban fabric around the factories of Clermont-Ferrand. This social model continued under the direction of François Michelin, grandson of the founder, who led the group from 1959 to 1999. Despite his sometimes conservative positions, François Michelin was recognized for his “social humanism”.
However, from the 2000s, the company begins a strategic shift. Edouard Michelin, son of François, announces the elimination of 7,500 positions, marking the start of a series of restructurings. At the time, Prime Minister Lionel Jospin emphasized that “we cannot expect everything from the State”. The founding family gradually left management, and the group, under Jean-Dominique Senard, then Florent Menegaux, intensified its reforms.

A very difficult transition

In a context of strong global competition, Michelin has gradually shifted part of its production to lower-cost markets. The group has built large factories in Poland, Spain, Brazil, China and Thailand, meeting international demand while reducing production costs. Despite these closures in France, Michelin continues to invest in the country: 2.5 billion euros have been injected over the last ten years, and new investments are planned.
On an environmental level, Michelin recognizes the polluting impact of its tires but positions itself as a leader in the search for sustainable materials. The group has set itself an ambitious goal: produce tires made exclusively from renewable or recycled materials by 2050.

What are Michelin’s new strategic axes?

Appointed in 2018 as head of Michelin, Florent Menegaux is faced with several major challenges. In addition to managing declining auto sales and growing competition, he continues the upscaling and diversification strategy. Michelin, which today has a turnover of 28 billion euros and employs 132,500 people around the world (including 19,000 in France), is expanding its activities beyond tires.
This orientation aims to strengthen the group's resilience in the face of market fluctuations and maintain its position as a global leader, despite the challenges linked to the Covid-19 pandemic and the drop in demand in the automotive sector.

Profits, although down slightly, remain above one billion euros for the first half of 2024, proving the solidity of the company in the face of market upheavals.

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