Europe auto struggles lead to cuts at Michelin, Schaeffler
PARIS
French tire company Michelin has said Tuesday it would close two French plants by early 2026 and German parts maker Schaeffler announced 4,700 job cuts, the latest signs of struggles in the European auto industry.
The Michelin plants in Cholet and Vannes in western France employ more than 1,250 people.
"It is the collapse in business that has led to this situation," Michelin CEO Florent Menegaux said.
The closure had become "unavoidable" due to competition from Asian tire makers as well as the "worsening competitiveness of Europe," notably due to inflation and rising energy prices, the French group said in a statement.
The company said it would support its employees, including with job offers in other companies or within the group, or early retirement.
The group is going through a difficult year with a slowdown in the new vehicle market.
Michelin had already closed its La-Roche-sur-Yon site in western France in 2020, and is preparing to close two plants in Germany by 2025.
The Michelin Group currently employs nearly 19,000 people in France, including 9,000 in manufacturing in 15 production plants.
In Germany, Schaeffler said it would cut 2,800 jobs at 10 sites in Europe's biggest economy.
Five sites elsewhere in Europe will be impacted, with two set to be closed entirely, Schaeffler said, without disclosing where.
The cuts were in response to "the challenging market environment, the increasing intensity of global competition, and ongoing transformation processes affecting the automotive supply industry," the company said.
Schaeffler, which specialises in making bearings for the automotive industry, currently has about 120,000 employees in 55 countries.
