Michelin Cutting Production in Europe Plants: Reports

Struggling with downturns in various European tire markets and segments, Groupe Michelin is making moves to reduce production and inventory levels, according to various reports.

Currently, Michelin passenger tire plants in Europe are reported to be “operating at 75% of their capacity, while those making truck tires are only operating at 60% of capacity,” according to Les Echos.

A recent deal with labor unions has given Michelin the ability to be more flexible with its work hour schedules, the newspaper noted.

Other reports said that Michelin plants in Spain also are seeing significant production reductions.

All of this is due to a prolonged slump in the European tire market, suffering under the weight of three years of reduced auto and truck sales across the continent. The European market for passenger and light truck tires fell by 13% in February, following a similar decline that kicked off the new year.

“We are not ruling out anything,” Florent Menegaux, director of Michelin’s passenger car and light truck tire division, was quoted by Les Echos. “We must think about the market’s evolution, assess whether the situation will last.”