Michelin Says Cost Saving Plans On Target

On October 1 Michelin stated it remains on target to reach its “Horizon 2010” strategic plan of becoming more competitive. The cost saving programmes it has implemented have reduced costs by 500 million euros since 2006, approximately a third of its 2010 goal.

“The group is on target to meet the 2010 cost-reduction objectives it announced two years ago,” the company announced. Michelin intends to reach an overall savings target of between 1.5 and 1.7 billion euros.

Michelin also plans to increase capacity in its Resende passenger car tyre factory in Brazil and the company says it is in “advanced discussions” over plans for a new factory in India dedicated to the production of truck and earthmover tyres.