Michelin

Business in Russia and CIS

Шаблон:Main 'Michelin

The company has been represented in Russia since 1997.

History

2024: Closure of two plants due to financial problems

On November 5, 2024, tire manufacturer Michlelin announced the closure of two factories in France due to "serious economic difficulties." Businesses in Cholet and Vanna, which employ 1,254 employees, will be completely shut down.

Michlelin said in an official statement that the operations of both plants were seriously affected by the structural transformation of the market for tires for passenger cars, light and heavy trucks. In particular, consumer demand has shifted towards low-cost tires, mainly from Asia. Inflation and rising energy prices also had a negative impact on the operation of Michlelin enterprises in the context of the prevailing geopolitical situation.

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Freepik

It says that during the decade (by 2024), the share of entry-level tires for passenger cars, light and heavy trucks increased by 9% and 11%, respectively. Because of this, the premium-level product segment in which Michelin operates was seriously affected. This situation led to an excess of production capacity at some sites of the company. As a result, Michelin is forced to curtail production at two plants in France. It is emphasized that this decision was made after a thorough analysis and assessment of all alternative scenarios.

Michelin will provide support to all affected employees by offering them early retirement or transfer to other divisions of the company (if available), as well as help in finding new jobs. The tyre manufacturer said it would record a provision of approximately €330m for one-time costs in its accounts.

Aware of the implications of its decision, the company is committed to mobilizing all available resources to individually support all 1,254 affected employees, Michelin said in a statement.[1]

2022

Loss of 202 million euros due to departure from Russia

In July 2022, the French car tire manufacturer Michelin reported a loss of 202 million euros due to the departure from Russia.

Sale of Russian business to local top managers

Tire manufacturer Michelin sells Russian business to local top managers, which the company announced on June 28, 2022. The deal became known a few months after Michelin suspended its activities in the Russian Federation. Read more here.

2021:2300 job cuts

In early January 2021, French tyre maker Michelin said it would cut up to 2,300 jobs within three years as part of a new plan to restructure and improve competitiveness. Management added that this would not entail layoffs or plant closures.

The estimated job cuts account for nearly 2% of the company's workforce - Michelin employs 127,000 employees worldwide. Due to fierce competition, the company has already abolished almost 1,500 positions since 2017 as part of its reorganization, including at its headquarters in Clermont-Ferrand and in the United States. The manufacturer also closed the factories of La Roche-sur-Yon (Vendée) and Bamberg in Germany.

Michelin cuts 2,300 jobs

The new plan takes into account the consequences of the COVID-19 pandemic, which has seriously hit the automotive industry. Earlier, in the spring of 2020, managing partners, members of the executive committee, as well as the chairman and independent members of the Michelin supervisory board announced a reduction in their salaries, but this did not help to cope with the crisis.

This plan is part of a broad approach to cooperation and social dialogue. When developing it, we will rely on negotiations on a three-year framework agreement, which should not entail layoffs, the company said in a statement. - This plan does not involve plant closures.

Michelin said the measures would affect up to 1,100 office positions and 1,200 factory positions and stressed that nearly 60% of job cuts would be based on voluntary early retirement schemes.

The company also said it remained committed to placing "high value-added businesses in France." As an illustration, Michelin talked about an "ambitious expansion strategy in the field of hydrogen solutions."^[2]

Notes