Michelin closing two plants in France with loss of over 1,200 jobs

Clermont-Ferrand, France – Michelin Group is to axe two production facilities in France, due to the ‘profound transformation’ of passenger-car and truck tire markets in Europe over the past decade.

In a statement, the French group said it was closing its passenger car and light truck tire plant in Cholet and metal reinforcement products unit in Vannes by early 2026 “at the latest.”

The decision will impact 1,254 employees, to which Michelin said it would provide support, according to its 5 Nov announcement.

Explaining the closures, Michelin said the European passenger/van and truck tire markets had been “moving strongly toward low-cost tires mainly from Asia,” over the recent years.

In the space of 10 years, it said, the market-share of entry-level passenger car & van and truck tires increased by 9 and 11 points respectively, to the detriment of premium product sales.

“This situation has led to structural production overcapacity in some Michelin passenger car-van and truck tire plants in Europe,” it added.

As it stands, Michelin said it had voluntarily stopped production at both sites until 11 Nov to allow management and unions to offer collective and individual discussions to employees.

The group expects to record a provision of €330 million in non-recurring charges linked to the closures in its consolidated accounts as of 31 Dec.

According to Michelin, the Cholet plant employs 955 people and mainly manufactures 17-inch and smaller light truck tires.

These products represent 85% of its operations, in addition to semi-finished products, mainly rubber compounds.

Michelin said in recent years, the light truck segment had "contracted significantly" in Europe, with a major impact on the Cholet plant’s production volumes.

Production at the site, it said, fell from around 4.375 million units in 2019 to around 2.625 million in 2024, "with no prospects for recovery."

The Vannes plant, which employs 299 people, mainly produces metal reinforcements: handling all stages of the manufacturing process.

Its products are used in the manufacture of truck tires and passenger car tires at Michelin sites in Spain, Italy and the rest of Europe.

Michelin said production volumes at the Vannes plant have been continuously falling over the recent years, notably due to changes in demand from the group's truck tire plants in Europe.

"Output has fallen from 41,000 tonnes in 2019 to the 34,000 tonnes forecast for 2024, a trend with no prospects for recovery," Michelin said.

The cuts in France follow Michelin’s decisions late last year to close two production factories in Germany and a facility in North America.

The German restructuring, disclosed in November last year, will see Michelin closing production sites in Karlsruhe and Trier as well as at its new truck tire and semi-finished product production in Homburg by the end of 2025

The move, in response to “increasing imports of low-cost truck tires, as well as with high inflation and rising production costs in Germany” will impact 1,410 employees.

In Ardmore, Oklahoma, Michelin North America is planning to end tire production at its manufacturing plant by “yearend 2025 or sooner”, impacting 1,400 jobs.