Paris: French tire manufacturer Michelin is set to close two of its factories in France, as reported by La Tribune newspaper. The closure, affecting the Cholet and Vannes plants, is scheduled to occur “at the latest by early 2026,” impacting 1,254 employees. The company cites increasing competition from Asian markets and a “continuing deterioration of competitive conditions” as primary reasons for the decision.
According to Burkina Information Agency, Pierre-Louis Dubourdeau, Michelin’s executive vice president in charge of industry and engineering, acknowledged the inevitability of the closure. He highlighted that these facilities have been struggling for several years due to the influx of low-cost imported products from Asia. Dubourdeau noted that electricity costs represent the second largest expenditure after salaries for the company.
In a related context, German carmaker Volkswagen is also experiencing economic challenges. On October 28, Daniela Cavallo, chairwoman of Volkswagen’s production board, ann
ounced that the company was contemplating the closure of at least three factories in Germany, which could lead to significant job cuts.