Due to market changes and reduced European competitiveness, the Michelin Group will support affected employees and local communities while strengthening its commitment to France.
The Michelin Group announces its intention to close the CHOLET and VANNES sites
Michelin told the employees of the CHOLET and VANNES plants that it intends to close down production by early 2026 at the latest. Both plants have been facing economic difficulties for several years.
Both sites have been severely impacted by the structural transformation of the Passenger car, Light truck, and Truck tyre markets and Europe’s worsening competitiveness due to inflation and rising energy prices.
In recent years, European markets for Passenger cars, Light trucks, and Truck tyres have undergone a profound transformation. A significant trend toward low-cost tyres from Asia has been detrimental to premium segments. This situation has led to structural production overcapacity at some of Michelin’s Passenger cars, Light trucks, and Truck tyre plants in Europe.
Aware of the consequences of its decision, the Michelin Group is committing to delivering all available resources to individually support the 1,254 affected employees and the two communities impacted by these closures.
Michelin Group’s Commitment: Personalised Support for Affected Employees
Michelin has decided to halt production at both plants through November to give management and the unions time to propose collective and individual discussions with employees. The objective is to set up an employee support system to provide immediate assistance following the closure announcement.
The Michelin Group’s management team has set a clear objective: by the end of the support phase, each employee will have a personalised solution.
Reinforced, Adapted Support Measures
All affected employees will receive individual support to help them build a new future. Some may be eligible for early retirement, while others could opt for internal transfers. For most employees, a specialised consultancy will provide personalised outplacement support. This service will offer a thorough employability analysis, including options for continuing education, training courses, and potential career reconversion.
To further ease the transition, employees may receive ongoing support after starting a new job, especially if the position is not confirmed following the trial period. Compensation for any pay gap of up to €400 gross per month will be provided for three years. A joint committee involving unions and management will oversee the support plan, ensuring each employee receives the necessary assistance for a smooth transition.
The approach also factors in the workforce’s strong competencies and the specificities of the CHOLET and VANNES plants. In particular, concerning people and sought-after industry know-how, many production operators, often with strong ties to their region, have few employees nearing the end of their careers. And, concerning the communities, rather dynamic labour markets.
Michelin Group’s Second Commitment: Creating Equal Local Job Opportunities
Michelin will mobilise all the expertise of Michelin Development, which is dedicated to effectively generating businesses and jobs. Michelin Development will analyse opportunities for future manufacturing or service-based operations in collaboration with local officials and economic development partners.
Revitalisation actions will aim to develop activities that bear future-oriented jobs for the benefit of the impacted communities, mainly in manufacturing and manufacturing-based services.
Prior revitalisation experiences demonstrate that actual job creation exceeds the number of jobs impacted by plant closures. For example, in the Joué-Les-Tours labour market, 1,054 jobs were created over four years for 706 suppressed jobs.
France Is a Core and Strategic Country for the Group
France is viewed as a strategic hub by Michelin, hosting its global headquarters in Clermont-Ferrand and a significant R&D centre at Ladoux Campus, where nearly 3,000 researchers drive technological advancements. Over the past three years, Michelin has strengthened its role as a top employer, recruiting around 2,000 employees and providing over 2,000 apprenticeship and internship positions.
In manufacturing, Michelin has modernised its French sites to focus on high-value-added activities, making it the only European tyre manufacturer with a significant industrial presence in Western Europe. With nearly 19,000 employees across France, Michelin maintains its most extensive European industrial base, even with recent closures in Cholet and Vannes.
France: A Core Hub for Michelin’s “Michelin in Motion 2030” High-Value Strategy
In France, Michelin’s “Michelin in Motion 2030” strategy centres on high-value activities, including high-tech tyre manufacturing for aircraft, agriculture, and mining.
The Group is also expanding its fleet management solutions through ventures like Watèa by Michelin, developing advanced composites for industries such as construction and healthcare, and scaling hydrogen systems through Symbio’s new gigafactory. Michelin is further innovating with inflatable solutions and eco-friendly adhesive resins, all contributing to the Group’s future growth and sustainability goals.
Michelin Pursues Major Efforts and Continued Investments in France
Over the past decade, Michelin has invested over €2.6 billion in France, including €1.5 billion to modernise production sites. This investment focuses on digitalisation, AI integration, and revamped production lines. It has an ambitious environmental policy addressing decarbonisation, water conservation, and waste management.
It also prioritises employee well-being through training programs, such as the Talent Campus, and improvements in the quality of work-life. Additionally, in Clermont-Ferrand, Michelin is driving one of Europe’s most significant revitalisation projects, Parc Cataroux, a €300 million initiative to create 1,000 new jobs by 2030, particularly in manufacturing training and biomaterials.
Social Dialog and Looking To the Future: “Michelin France Manufacturing 2030” Project
Michelin’s ambition is to build strong manufacturing in France. As such, the company will continue to work toward this goal. This is why Michelin offers the unions to work on creating the conditions for its sites and employees in France to better project toward the future.
The Group is convinced that with the “Michelin France Manufacturing 2030” project, through collective and co-constructed work with the unions, levers will emerge concerning competency development and career paths, work organisation, the sites’ competitiveness, particularly for small ones, defining a protection and support floor for employees when activities need to be shifted, with a view to help prepare Michelin’s future and that of its employees in France.
