Michelin to cut capital expenditure by half

ERJ staff report (DS)

Paris -- Michelin has said it will cut its capital expenditure in 2009 to euro 700 million. The company had previously said it would spend euro 1500 million, but cut that to euro 1270 million last Autumn.

The company said it would maintain expenditure for projects in Latin America, India and China. It also said R&D and innovation-related spending would be maintained.

Michel Rollier said the cuts would come mostly in the traditional markets of North America and Europe, but declined to say which projects would be cut. He added that when team leaders are told their capital budgets had been cut, that often leads to new ideas for cost-saving measures.