Tyres giant Michelin has turned down the French government’s offer of financial help after it announced it was willing to pump six billion euro’s into the nation’s ailing car industry.
The tyres manufacturer declined the handout offer and said that its debt financing needs were covered at the present time.
However, Michelin is taking serious measures to make savings and reduce overheads at its UK operations to keep its books in order.
It has just announced a pause in production of its Encore brand truck tyres between April 11 and 20 and a delay in the annual salary increases of around 600 salaried employees to ease the financial burden.
It comes on the back of the news earlier this week that Michelin may cut hours at its Dundee car tyres plant in a bid to avoid the need for job cuts.
Management proposals include staff taking 56 hours off in 2009 on full pay, with the stipulation they work the time back in 2010 or taking the same amount of time off on two-thirds pay, without having to work it back.
Plant bosses want to maintain staff levels so they will be in a positive position to take advantage of any upturn in demand.