Michelin will close two factories due to the automotive crisis and 1,254 workers will be unemployed. The statement of the French tire manufacturer group concerns the factories in Cholet and Vannes, which will stop production at the beginning of 2026 at the latest.
The company announced that there had been a “collapse” in truck and light truck tire sales and that as a result “it was not possible to maintain the profitability of the two factories”, especially under the “worsening competitiveness of Europe”. “Due to inflation and rising energy prices.”
Strike
Employees closed the site and decided to go on strike shortly after the management’s announcement, which was already planning to stop production until November 13. “This is a spontaneous act of anger and rebellion against the dismissals. We will see later what the general assemblies of the conflicted workers will decide on the measures to be taken,” Bastien You, union delegate of the CGT union, told AFP. .
Gilles Bourdouleix, mayor of Cholet, condemned the “rogue version of capitalism”. “It is clear that they wanted to let the situation degenerate for years and then come to this cruel decision, which is cruel from an economic point of view, but above all cruel from a human point of view,” Michelin complained. It has been available in Cholet for “54 years”. “So it’s symbolic. And it’s heartbreaking for us,” he added.
“This situation was caused by the collapse of the business world and I want to say to all employees that we will not leave anyone on the street,” Michelin CEO Florent Menegaux told AFP. he said. Michelin had already significantly reduced its presence in France, closing six factories in two decades. Industry Minister Marc Ferracci called for “an exemplary support plan for employees and local communities”.
plan
As of November 11, production will be stopped and negotiations with unions on support measures will begin. The Michelin group also announces that it will allocate 330 million euros from its 2024 budget. “All affected employees will benefit from individual support to help them build a new future,” the company assured. Some will be able to access early retirement, while others will be able to opt for internal transfer support or be redeployed, and according to the company this will be the solution for the majority, with “compensation for salary differences of up to 400 euros gross per month”. three years”.
Michelin has also pledged to “create at least the same type of jobs locally” as other properties. Regarding production, the company is “actively committed to modernizing its production facilities wherever possible, redirecting them to very high value-added activities and thus consolidating production facilities in the country”.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
