Michelin Reports Cutbacks at Most Global Facilities

November, reports Michelin, was a month in which month-on-month demand for tyres declined sharply in all European, North and South American and Asian markets. In response to this phenomenon, the company has, it says, “cut back significantly” on operations in most of it global facilities.

This decision, which Michelin notes stems from the current economic environment, will lead to exceptional costs due to under-utilisation of capacity, which will amount to nearly 150 million euros in the fourth-quarter accounts. In this way, the tyre major says it is taking the necessary steps to effectively manage inventories and maintain its flexibility as it moves into 2009.