Baptiste Morin, edited by Marina Sgard // Photo credit: AFP
4:36 p.m., November 6, 2024
After the announcements of layoff plans from the Auchan and Michelin groups, more than 3,600 jobs will be eliminated. With production costs increasing in Europe, the loss of competitiveness is felt, particularly in Asia.
A black Tuesday for jobs. A wave of layoffs announced this Tuesday by Auchan and Michelin, two major brands in difficulty, threatens the job market. In total, 3,600 jobs will be eliminated.
Spokes in the wheels
For five years, the cost of production in Europe has continued to increase. This increase would be the consequence of the rise in energy prices, but also of the increase in wages to try to keep up with inflation. The Michelin company explains that manufacturing a tire now costs almost twice as much in Europe as in Asia. Michelin, like many other industrial groups, is calling on Europe to be less naive in the face of Asian competition.
But regulations don't make it easy. This is the case of Brussels which will soon require Michelin to know the traceability of the rubber used to manufacture its tires. The cost of implementing this obligation would amount to 200 million euros per year. Asians are not affected by this measure, which has a long-term impact on the French and European market.
