FRENCH tyre maker Michelin is likely to implement new labour rules at its French factories to help adjust capacity.
Michelin CEO and managing partner Jean-Dominique Senard has announced the new labour contract following the company’s recent annual general meeting. Three of Michelin’s 17 plants have already adopted the plan, according to reports.
According to Senard ,reduced demand due to six-plus years of heavily reduced new car and commercial truck sales, has accounted for dropped utilisation rates at Michelin’s European plants to 50%-60% for truck tyres and 70% for passenger and light truck tyres.
He also attributed the slow tyre sales to the European economic slowdown, which finds Michelin scouting for more growth outside of Europe, and considering restructuring its European operations. Currently, Michelin employs some 63,000 workers in Europe, including 24,000 in its France operations.
Plant shutdowns, though, “are not on the agenda yet,” Senard said. “All the options are under scrutiny. I don’t know how many factories there will be in Europe in 20 years. What I know is that those that will be there will be competitive.”