Michelin to Cut Production at North American Plants

In a move to reduce inventory at some of its facilities, Michelin North America is reducing production of selected product lines. The company has described these cuts, which will affect five North American plants, as coming “in response to the unprecedented deterioration in market conditions.”

“Market demand is down tremendously,” said Michelin spokeswoman Lynn Mann. “Consumers are being very careful in their purchases. They’re driving fewer miles. As fewer goods are shipped, commercial truckers are driving fewer miles.”

The affected plants include three in South Carolina: Greenville (passenger and light truck tyres), Lexington (passenger and light truck tyres) and Spartanburg (truck tyres), plus the company’s Ardmore, Oklahoma (passenger and light truck tyres) and Waterville, Nova Scotia (medium truck, earthmover and OTR tyres). Employees will mainly be affected in terms of reduced working hours, although contract positions have also been eliminated.

In spite of these actions, a statement released by the tyre maker reports that “Michelin remains a healthy company on sound financial footing. These recent actions to reduce our costs are helping us weather the crisis…these recent actions to reduce our costs are helping us weather this crisis. We are continuing to monitor the economic and market situation, which is unpredictable. Further actions may be necessary.”