The ax has fallen. The tire manufacturer Michelin announced on Tuesday, November 5 at nine in the morning to the employees of the Cholet (Maine and Loire) and Vannes (Morbihan) factories the cessation of production at these plants. “at the latest at the beginning of 2026”. Before its closure, the company is committed to helping its 1,254 employees (955 in Cholet, 299 in Vannes) to find long-term employment.
Given the age of the employees, there will not be many early retirements, management indicates. Since October 16, the Michelin inter-union, upset by the silence of the managers about the future of these slow factories, had withdrawn from all the group’s work meetings.
How did Florent Menegaux, president of Michelin, arrive at this decision? “We searched, but we did not find an alternative for these two sites, explains to World. On the other hand, we have found the possibility of making the activity in Joué-lès-Tours viable for a while longer. » The head of Clermont-Ferrand does not commit to the long term. Since the Covid-19 pandemic and then the war in Ukraine, “The only stable line at Michelin is that things are in constant motion”warns.
Slow market
The difficulties are explained by the weakness of the automobile market, but also and above all by Asian competition. The Cholet plant, specialized in tires for vans and SUVs, was favored for a time by exports, “but in five years its competitiveness has deteriorated”believe the leader. “In order to upgrade and produce wider tires, it would have been necessary to change the entire production tool, but other plants of the group that were already equipped were insufficiently loaded”continues Mr. Menegaux. In this segment of tires for light trucks and heavy vehicles, Michelin has already announced, at the end of 2023, the closure of three factories in Germany, one in Poland and even two in China.
“In 2019, our production costs in Asia were 100, while in Europe they were 140 and 135 in America, details the pattern, still a bit technical. In 2024, these same costs will still be 100 in Asia, while they have increased to 195 in Europe and 190 in America.. Today Europe is twice as expensive as China, within the Michelin group. It was even four times before the fall in the price of electricity. Productivity increases cannot make up for that difference. » For car manufacturers, the price of energy has relatively little impact on the cost price, but for a company like Michelin, which transforms materials by heating them, it is essential.
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