The tire maker struggled for years to keep these plants running. Europe's tire market changed a lot in the last decade. Cheap tires from Asia took over. High-end tires lost ground. For passenger car and light truck tires, low-cost options grew by 9 points. Premium tires fell by 11 points. Truck tires saw similar shifts.
Inflation and energy costs made things worse. Some Michelin plants in Europe now make more tires than they can sell.
Despite the remarkable commitment of the teams and the efforts of the Group, the viability of the two plants could not be preserved, the company said in a statement.
At this time, Michelin has made the deliberate decision to halt production at both plants through November 11 to give management and the unions time to propose collective and individual discussions with employees. The objective is to set up an employee support system providing immediate assistance following the announcement.
As part of the employee representative bodies’ consultation and of union negotiations concerning support measures, management has set the clear objective that, by the end of the support phase, each employee will have a personalized solution.
Source: Michelin