The French company Michelin, which employs over 19,000 people, claims that the “worsening competitiveness of Europe,” particularly as a result of inflation and rising energy prices, and competition from Asian tire manufacturers have made the factory closures “unavoidable.”
Workers at Michelin factories in western France set fire to tires and threatened to go on strike after the business announced it will shut down two sites by early 2026 due to declining sales.
On Tuesday, Michelin announced that the closure of the operations in Vannes and Cholet, western France, which together employ over 1,250 people, had been decided “as a last resort.”
The announcement by German car components manufacturer Schaeffler that it will eliminate 4,700 jobs in Europe is another indication of the difficulties facing the European auto industry.
Car sales in Europe have decreased both domestically and in important markets. China as the competition from Chinese manufacturers has increased and the market for electric vehicles has decreased.
The closure of the facility, which employs over 19,000 people in France, was deemed “unavoidable” by Michelin because of competition from Asian tire manufacturers and the “worsening competitiveness of Europe,” particularly as a result of inflation and rising energy prices.
“All over”
According to unions, workers at the Cholet facility voted in favor of going on strike.
Workers at the 955-person Cholet industrial factory set tires on fire during a protest in front of the plant, sending thick black smoke into the air. Traffic at a crossroads leading to the location was stopped by about 200 workers.
Employee and SUD union delegate Morgane Royer told AFP, “They put the 900 employees in a room like cows in a slaughterhouse and announced that it was all over.”
CGT secretary David Goubault said, “They either keep our jobs or they pay us until we retire.” “They’ve exploited us for years.”
Prior to November 13, Michelin had stated that it would stop production at the two locations “to give management and the unions time to propose collective and individual discussions with employees.”
“The rogue version of capitalism” was condemned by Gilles Bourdouleix, the right-wing mayor of Cholet.
Bourdouleix described the decision as “brutal” and stated, “For us, it’s heartbreaking,” given that Michelin has been in Cholet for fifty years.
In front of the Vannes plant, which was constructed in the early 1960s and has about 300 employees, workers also set fire to pallets and tires.
According to Eric Boisgard, who has been employed there since 2004, the staff remained silent in response to the news.
His words, “Everyone was devastated,”
“Earthquake”
According to David Robo, the right-wing mayor of Vannes, “It’s a black day for Vannes and an earthquake for the region.”
Michelin promised to create “as many jobs as those eliminated” in order to assist the two regions.
The business promised to assist its workers by offering early retirement or employment opportunities in other organizations or inside the group.
Florent Menegaux, the CEO of Michelin, told AFP, “This situation is the result of business collapsing, and I want to assure all of these employees that we will not abandon anyone.”
According to Michelin, the Cholet facility primarily produces light vehicle tires, a market that “has seen a significant decline” in Europe in recent years and has no chance of rebounding.
The Vannes facility primarily manufactures cables and other metal reinforcements that are utilized in the production of tires in nations like Italy and Spain.
According to Michelin, the plant’s production volumes have been dropping as a result of shifting demand from European truck tire factories.
Due to the slump in the new car industry, the firm is having a challenging year.
By 2025, Michelin plans to shut down two factories in Germany after closing its La-Roche-sur-Yon facility in western France in 2020.
