2024-11-05 10:03:00
The management of the French tire manufacturer announced this closure this Tuesday, November 5 morning to the 1,254 employees of these two factories in the west of France, who had feared it for several weeks.
Michelin had already significantly reduced its footprint in France, its first country: with Poitiers, Toul, Joué-lès-Tours and La-Roche-sur-Yon, it will have closed six factories in twenty years. The group had also announced a plan to cut 2,300 jobs in France in 2021: there will only be 18,000 employees after the closure of Cholet and Vannes, including 8,000 in industry.
The tire giant is not the only one coughing: the sharp slowdown in the automobile market is causing serious difficulties for European equipment manufacturers, large and small, and site closures are continuing, as at the rim manufacturer Impériales Wheels and gearboxes Dumarey Powerglide. « The circumstances of the European tire market – heavy goods vehicles on the one hand, and vans – mean that we do not see how we could reload these sites structurally in the medium and long term”explained Mr. Menegaux on Tuesday. The closure became “inevitable » due to Asian competition in light truck and truck tires, the sectors of the two factories.
The CEO of Michelin also questioned “slow deterioration of competitiveness » from Europe which prevents exports from this continent. The group is also preparing the closure of two factories in Germany by 2025.
The large factory in Cholet (Maine-et-Loire) employs 955 employees, who mainly manufacture small tires for light trucks (17 inches and less). This segment of the market experienced a significant decline » in Europe in recent years, “with a drastic reduction in production volumes (…) with no prospect of recovery », explains Michelin. This declining production will be taken over by the group’s sites in Italy, Spain and Poland.
The Vannes (Morbihan) site has 299 employees who mainly produce metal cables for tires then manufactured in Spain and Italy in particular. This factory has experienced a continuous decline in its production volumes “due in particular to the change in the level of demand from the group’s heavy-duty factories in Europe (…) with no prospect of recovery », underlines Michelin.
« Solutions »
The group commits to “support each of the employees concerned with tailor-made solutions », with job offers in other companies or in the group, or early retirement. He “ will also support the two impacted territories by participating in the creation of at least as many jobs as those eliminated “, he promised.
In La-Roche-sur-Yon, 635 jobs were created in four years for 613 jobs eliminated, according to Michelin. In Joué-Lès-Tours, 1,054 jobs were created in four years for 706 jobs eliminated.
The group’s union, worried about the future of several French sites, recently broke off discussions with management. However, Michelin intends to propose to the unions a “Michelin Industry France 2030” plan, which should enable “ French sites and their employees to better plan for the future ».
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**Interview on Michelin’s Closure of French Plants**
**Interviewer:** Good morning, and thank you for joining us. Today, we have with us Dr. Claire Dupont, an economic analyst specializing in the European automotive sector.
**Claire Dupont:** Good morning! Thank you for having me.
**Interviewer:** Michelin recently announced the closure of its Cholet and Vannes plants in western France, impacting over 1,200 employees. What are the main reasons behind these closures?
**Claire Dupont:** The closures are largely attributed to high operational costs and increased competition from cheaper Asian manufacturers. This has led to a decline in production volumes, particularly in segments like light truck tires, where Michelin’s European sites were unable to remain competitive.
**Interviewer:** Michelin has already closed several plants in France over the past 20 years. How significant is this latest announcement in the context of their overall operations?
**Claire Dupont:** It’s quite significant. With these closures, Michelin will have reduced its manufacturing footprint in France to the lowest level in decades. This reflects a broader trend where European manufacturers are struggling to compete in a global market increasingly dominated by lower-cost producers.
**Interviewer:** The CEO of Michelin mentioned a “slow deterioration of competitiveness.” Could you elaborate on what this means for the European automotive industry?
**Claire Dupont:** Absolutely. The comment reflects concerns about operational inefficiencies and higher labor costs in Europe, which hinder the ability of companies like Michelin to compete on price. Additionally, the current economic climate and shifts in consumer demand are exacerbating these challenges, making it difficult for European manufacturers to sustain their operations.
**Interviewer:** Michelin isn’t alone in facing these challenges. Other manufacturers like Impériales Wheels and Dumarey Powerglide are also experiencing difficulties. What does this indicate about the state of the automotive supply chain in Europe?
**Claire Dupont:** This indicates a systemic issue within the European automotive supply chain. Many equipment manufacturers are under pressure due to declining demand and rising costs. The concentration of site closures suggests that companies are reassessing their structural investments and might be pivoting towards markets where they can remain competitive.
**Interviewer:** With Michelin planning closures in Germany as well, what does this mean for the workforce in the automotive sector across Europe?
**Claire Dupont:** Unfortunately, it suggests an ongoing trend of job losses in the sector. The closures not only affect the immediate workers but also have a ripple effect on local economies that rely on these plants. It raises questions about job retraining and support for affected employees, which is crucial for easing the transition in this shifting landscape.
**Interviewer:** Thank you, Dr. Dupont, for your insights. It’s certainly a challenging time for the automotive sector in Europe.
**Claire Dupont:** Thank you for having me. It will be interesting to see how companies adapt to these challenges going forward.
