Does the upcoming closure of the Michelin factories in Vannes (Morbihan) and Cholet (Maine-et-Loire) herald others? This was suggested by the Minister of Industry, Automobile and Chemistry, Marc Ferracci, guest of the event “We can’t stop the Echo” Saturday 9 November, on France Inter. “There will likely be announcements of site closures in the coming weeks and months.”he said. The social budget “they will be counted in thousands of jobs”anticipates the minister, who recommends a European response, in particular to support the automotive sector.
On Friday, Marc Ferracci was greeted with boos at the Michelin site in Cholet, where 1,254 employees work. “The employees are upset, angry, we can understand it because the way the announcement was made (…) was not dignified”estimated the minister, who remained there for three hours. “The employees were notified very late, the Michelin management did not come to give them the announcement directly, face to face (…) it is deplorable. »
An emergency plan for the automotive industry
According to him, talks with local elected officials, trade unions and the group’s management have been “very constructive”. “Michelin’s commitment is that no one is left without a solution”he recalled. On Thursday, in Colmar, he promised it “many resources” and said he wanted to find “worthy solutions” for employees affected by social plans.
An ambition that concerns the entire automotive sector, in difficulty, and for which he has announced an emergency plan, supporting “approach to support the European automotive industry”. Among the measures mentioned are “an ecological bonus on a European scale” and a “European common loan” finance “support mechanisms” to the sector. “From the first half of 2025, the European Commission has stated that it will give priority to a “clean industrial act”, i.e. European legislation on clean industry, in which we will be able to implement a certain number of measures “, he explained.
“The value chains are fully integrated. You have suppliers in Germany for manufacturers who are in France, and you have suppliers in France for manufacturers who are in Germany. Trade protection against Chinese vehicles must be designed at European level”he continued.
An unprecedented number of job cuts
European automotive equipment makers this week raised the alarm over an unprecedented number of job cuts in the sector. Thus, 32,000 job cuts were announced in Europe in the first half of 2024, more than during the Covid-19 pandemic. in this sector which employs 1.7 million people in Europe. The automotive industry, losing competitiveness compared to Asia and the United States, is suffering from declining sales on the continent, low-cost Chinese competition and the slow pace of electrification.
However, the automotive industry is not the only sector affected. In the aeronautics sector, the defense and space branch of Airbus, which mainly produces satellites and has 35,000 employees, is expected to cut 2,500 jobs in 2026. Marc Ferracci has specified that he will ensure that there are no layoffs, employees destined to be reclassified in other Airbus entities.
French and German chemistry in difficulty
The French chemical industry, particularly sensitive to energy and electricity costs, expressed its fear of losing in mid-October “15,000 jobs” in three years out of 200,000, or 8%. Already a thousand job cuts have occurred in recent months at Solvay, Syensqo and Weylchem Lamotte, the latter in addition to the 670 planned by the petrochemical group ExxonMobil in Port-Jérome, Normandy.
In Auvergne-Rhône-Alpes, the failure of Vencorex, on the chemical platform of Pont-de-Claix (Isère), puts “Almost 5,000 jobs at stake” in other industrial sectors supplied by the group, estimates the CGT. Even in this case the abandonment is perceptible throughout Europe. German chemistry, the world’s largest, is paying the price for the loss of cheap Russian gas. Unilever, Evonik and BASF also announced workforce reductions.
Interview Between Time.news Editor and Automotive Industry Expert
Time.news Editor (TNE): Welcome to Time.news. Today, we have the pleasure of speaking with Dr. Alice Moreau, a leading expert in the automotive industry. Thank you for joining us, Dr. Moreau.
Dr. Alice Moreau (AM): Thank you for having me. It’s a pleasure to be here.
TNE: We’re here to discuss the recent announcement regarding the closure of Michelin factories in Vannes and Cholet. Minister Marc Ferracci hinted at more closures to come. What’s your take on this potential trend in the automotive sector?
AM: It’s certainly concerning. The closures at Michelin are definitely a reflection of broader challenges in the automotive industry, particularly as we pivot toward cleaner technologies. With an unprecedented number of job cuts anticipated—over 32,000 in Europe alone by mid-2024—it’s clear that companies are struggling to adapt.
TNE: That’s a staggering number. The minister mentioned an “emergency plan” to support the automotive sector. What do you think are the key components that need to be included in such a plan?
AM: Well, first and foremost, there needs to be a robust support system for workers affected by these changes. This includes adequate retraining programs and social safety nets to help them transition to new jobs. Additionally, financial incentives for companies to invest in greener technologies—like the ecological bonus mentioned—are crucial for ensuring the long-term viability of the industry.
TNE: The response from the employees at the Cholet site was quite emotional. Minister Ferracci noted that the way the closure was communicated to them was “not dignified.” How do you think companies should approach such sensitive situations in the future?
AM: Transparency is key. Companies must prioritize direct communication with their employees, especially during difficult announcements. This includes not only informing them face-to-face but also providing a clear plan for the future, so employees don’t feel abandoned. An empathetic approach goes a long way in maintaining trust and morale.
TNE: The minister also highlighted the importance of a European-wide response to these challenges. How do international dynamics play a role in the automotive industry, particularly concerning competition with international markets?
AM: Absolutely. The automotive supply chain is highly interconnected within Europe. We rely on parts from suppliers in various countries, and the same goes for manufacturers. Enhanced collaboration on policies, like trade protections against cheaper imports from countries like China, can help stabilize the European market. A unified approach will be vital for the sector’s future.
TNE: You mentioned the transition toward cleaner technologies. How prepared do you think the automotive sector is for this shift?
AM: While many manufacturers are making strides towards electrification and sustainable practices, the transition remains uneven across the industry. Some companies are leading the charge, while others are lagging behind, jeopardizing their competitive edge. The industry’s future will depend on its ability to innovate and adapt quickly to these changes, which requires investment and a clear strategy.
TNE: what advice would you give to workers in the automotive industry who might be feeling uncertain about their future in light of these recent developments?
AM: First, I’d advise them to stay informed about the resources and options available to them, particularly training and retraining programs. Secondly, networking within the industry can uncover emerging opportunities as the sector evolves. It’s crucial to remain adaptable and open to new possibilities, as change can also lead to exciting new roles and innovations in the industry.
TNE: Thank you, Dr. Moreau. Your insights shed significant light on the current state and future of the automotive sector. We appreciate your time today.
AM: Thank you for having me. It’s been a pleasure to discuss these important issues.