French tire giant Michelin has just announced imminent closure of two of its factories in Germanyas well as the elimination of 1,500 jobs, at the expense of “increase in the cost of production” in country.
This decision is part of a “phase-out until 2025” at the plants in Karlsruhe and Treves, and also stopped the production of truck tires and semi-finished products at the plant in Honburg.
What are the excuses?
Michelin also explained its intention to move its customer service center dedicated to Germany, Austria and Switzerland, which is currently located in Karlsruhe, to Poland. In general, These terminations affect 1,532 employeesof the 5,000 that Michelin currently has in Germany, Austria and Switzerland.
Michelin justifies this strategy “the context of increased competitive pressure and the growth of production and operating costs in Germany”. The group highlighted the effects of the recent health crisis and the geopolitical crisis, as well as their effects on energy, logistics and raw material prices, combined with high inflation, which affected Germany’s competitiveness.
However, these explanations have drawn criticism, particularly from the unions, with whom management has been discussing the program of reductions announced at the end of October.
The IGBCE union has expressed its displeasure, expressing regret over the matter “the planned reduction is unjustified”and also accused Michelin of seeking to maximize its profits at the expense of highly committed and skilled workers.
German industry is in a difficult position
The decision comes in a difficult context for German industry, which has faced geopolitical upheavals that have affected its export-oriented economic model. as well as high energy pricesespecially after the war in Ukraine and the cessation of Russian gas supplies.
At the same time, Michelin faces supply problems after the pandemic and faces increased competition from heavily subsidized Chinese and American companies.
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Source: Auto Plus
Robert is an experienced journalist who has been covering the automobile industry for over a decade. He has a deep understanding of the latest technologies and trends in the industry and is known for his thorough and in-depth reporting.