Bibendum, the Michelin man mascot, before a press conference in Paris
The tire manufacturer Michelin announced on Tuesday its intention to close its Cholet (Maine-et-Loire) and Vannes (Morbihan) sites by early 2026, which employ 1,254 employees, due to competition from low-cost Asian tires. and the rise in energy prices in Europe.
The entire European automotive sector is currently facing a combination of difficulties: market decline, energy transition and Chinese competition.
“In recent years, the European passenger-light truck and heavy-duty tire markets have undergone a profound transformation, moving strongly towards low-cost tires mainly from Asia,” Michelin explained in a press release.
“The remarkable commitment of the teams and the efforts of the group were not enough to preserve the viability of these two sites, heavily impacted by (…) the deterioration of Europe's competitiveness, particularly due to the inflation and rising energy prices,” he added.
Michelin specified that the majority of affected employees will leave the group and will be offered “external professional mobility” support, while the others will benefit either from pre-retirement measures or from support to be reclassified within of the company.
To finance this plan, Michelin will record a provision of around 330 million euros in non-recurring charges in its consolidated accounts as of December 31, 2024, he added.
The Clermont-based group, which already announced a year earlier the closure of two German truck tire sites, lowered its annual result forecast last month to take into account a more marked slowdown than expected in the automobile market in the third quarter. .
(Written by Elena Smirnova, with Gilles Guillaume, edited by Blandine Hénault)
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