These two sites will stop producing by 2026 at the latest. The automotive supplier justifies this restructuring by increasing energy costs.
Michelin unions fear a grim scenario for the Cholet (Maine-et-Loire) and Vannes (Morbihan) sites. The management of the French group has just confirmed this to him. Production at these two factories, which employ a total of 1,254 people, will be permanently stopped “by early 2026”, announces the Michelin group, which has 132,000 employees worldwide, of which 19,000 in France.
“It’s obviously a shock for the employees, recognizes Florent Ménégaux, general director of the Michelin group. Activity on these two sites will not resume until next Monday to give everyone time to process this announcement. But it is important that activity resumes and that everyone maintains self-confidence. Michelin employees are highly qualified and recognized for their skills. Everyone will be supported individually until they find a job,” promises the head of the company renowned for its social commitment. Early retirement and internal and external mobility programs will be offered as each time a site closes.
Priority to social support
The last closure of a Michelin plant in France dates back to 2019. The site in La Roche-sur-Yon (Vendée), which produced high-end tires for heavy vehicles, then employed 600 people. This closure also had repercussions on the staff of the Cholet factory which produced rubber compounds for La Roche-sur-Yon. But today Michelin cites La Roche-sur-Yon as an example: 614 out of 618 employees found work in the year following the closure. “We also decided to offer employees who were not satisfied at the end of the trial period with a new employer the opportunity to return to Michelin and resume the support process”says the leader of the group. Michelin will budget a provision of 330 million euros in December 2024 to carry out the renovation of the two sites.
Michelin management assures us: “all alternative scenarios have been analyzed and studied to avoid closure”. But the market for tires for cars and vans, as well as heavy commercial vehicles, is now under attack from cheaper Asian groups. Michelin highlights the deterioration of competitiveness in Europe due to wage inflation and rising energy prices. “The cost of energy in Europe is twice as high as in the United States or Asia remembers Florent Ménégaux. Today our production costs in Europe are twice as high as in 2019”. The group is committed to helping create on both sites “at least the same number of jobs” like in La Roche-sur-Yon where an activity park dedicated to mobility has been set up.
How will Michelin, under these conditions, manage to maintain the 19,000 jobs in France, of which 9,000 in 15 factories? “We will never be able to guarantee employment, remembers Florent Ménégaux. In a globalized market like ours it would be irresponsible”. Michelin underlines, however, that with its 132,000 employees – of which 90,000 in industry – France will remain the group’s leading industrial country in Europe, both in terms of number of sites and number of employees.
Interview between the Time.news Editor and Florent Ménégaux, General Director of Michelin
Editor: Good day, Mr. Ménégaux. Thank you for joining us today amidst what is undoubtedly a significant transition for Michelin. The recent announcement regarding the closure of the Cholet and Vannes sites has sent shockwaves through the community. Can you explain the reasoning behind this decision?
Ménégaux: Thank you for having me. Indeed, this was a difficult decision, but we must prioritize the long-term sustainability of our operations. Rising energy costs and changing market demands necessitated a restructuring. It’s essential for us to adapt and ensure that Michelin remains competitive and focused on innovation.
Editor: Understandably, this is a challenging moment for your employees, especially considering that 1,254 individuals are affected. How is Michelin planning to handle the transition for these workers?
Ménégaux: That’s a priority for us. We are committed to supporting our employees through this difficult time. Each individual will receive personal support to help them find new job opportunities—whether through early retirement packages or mobility programs. We want to ensure that every employee can navigate this transition successfully.
Editor: The last significant closure was in La Roche-sur-Yon in 2019. You mentioned that a large percentage of employees there found new work shortly after the plant’s closing. What lessons has Michelin taken from that experience to assist the affected workers in Cholet and Vannes?
Ménégaux: The closure in La Roche-sur-Yon taught us the importance of tailored support. We ensured that we maintained open communication with the workforce throughout the process and provided extensive retraining opportunities. For those who might feel uncertain after the transition, we will also have additional programs in place to help them adjust.
Editor: While this decision appears to be a response to financial pressures, do you feel there is a broader implication regarding the state of manufacturing in France, especially in the automotive supply sector?
Ménégaux: Absolutely. The automotive industry as a whole is undergoing comprehensive change, driven by technological advancements and shifting consumer preferences. French manufacturers must adapt by investing in new technologies and exploring sustainable practices. This is a crucial time for innovation in our sector.
Editor: You mentioned the promise of support. How critical is social responsibility in Michelin’s corporate philosophy, especially in such difficult circumstances?
Ménégaux: Social responsibility is at the heart of Michelin’s values. We take pride in our commitment to our employees and the communities where we operate. It’s not just about the bottom line; it’s important for us to foster a culture of support and confidence. Ensuring that our workers feel valued and cared for is paramount to our ethos.
Editor: Looking forward, how does Michelin plan to maintain its competitive edge in the global market while addressing these challenges?
Ménégaux: Our focus will be on innovation, particularly in sustainable and high-tech solutions. As we transition from traditional manufacturing, we are investing in R&D to develop cutting-edge tires and mobility solutions. We are also exploring greener production methods to align with global sustainability goals. This dual approach—supporting our workforce while embracing new technologies—will be key to our future.
Editor: Thank you, Mr. Ménégaux. Your insights into Michelin’s direction during these turbulent times are greatly appreciated. We can only hope for a swift and positive transition for all the affected employees.
Ménégaux: Thank you for having me. We’re committed to making this transition as supportive as possible and look forward to a brighter future for our employees and the company.