Michelin announces its intention to close the CHOLET and VANNES sites, and commits to providing individual support to each employee and to revitalizing the two communities
Paris – November 5, 2024 – 9:30 am
The Michelin Group announces its intention to close the CHOLET and VANNES sites, and commits to providing individual support to each employee and to revitalizing the two communities
- The decision had become unavoidable given the structural transformation of the Passenger car & Light truck and Truck tire markets and worsening competitiveness of Europe.
- The Group is committed to assisting each affected employee by providing them personalized support. The Group will also support the two impacted communities by creating at least as many jobs as were suppressed.
- France is a core and strategic country for the Group, where Michelin invests continuously.
Michelin today announced to the 1,254 employees of the CHOLET and VANNES plants its intention to close down production by early 2026 at the latest. Both plants have been facing severe economic difficulties for several years.
Despite the teams’ remarkable engagement and the Group's efforts, the viability of the two plants could not be preserved. The two sites have been severely impacted by the structural transformation of the Passenger car & Light truck and Truck tire markets and worsening competitiveness of Europe, notably due to inflation and rising energy prices. This decision has been made as a last resort, once all alternative solutions and scenarios have been analyzed and evaluated.
In recent years, European markets for Passenger car & Light truck and Truck tires have undergone a profound transformation, with a strong trend toward low-cost tires, mainly from Asia, that has been detrimental to premium segments. In fact, over a decade, market share of entry-level Passenger car & Light truck and Truck tires has increased by 9 and 11 points, respectively, taking away share from the corresponding premium segments, which have fallen by 11 and 8 points (Source: Roland Berger: May 2023 for Truck tires and June 2024 for Passenger car & Light truck tires). This situation has led to structural production overcapacity at some of Michelin's Passenger car & Light truck and Truck tire plants in Europe.