By Denna Bowman
Michelin tyres are set to announce 1,500 job cuts in France as part of drastic cost-saving measures, according to a leading French newspaper.
The French tyres manufacturer is acting in response to the collapse in global demand for tyres, the report in Le Monde claims.
A spokeswoman at Michelin has refused to comment, however, she said that the company hoped to be able to say more about the situation following a meeting with trade unions tomorrow.
Sakir Ali Mandjee, a representative at the SUD union at Michelin, was quoted as saying: “On June 9, during a group committee, we have asked whether a layoff scheme was being prepared and the management did not provide any denial.”
Michelin’s rival, German tyres manufacturer Continental, which is also struggling with a sharp drop in orders from the auto industry, has already announced the closure of plants in France and Germany, resulting in the layoff of hundreds of workers.
News of the closure of the Clairoix plant in France it triggered the most high-profile industrial disputes the country has ever seen.
Tyre and equipment makers have suffered along with automakers, which have been forced to slash production to reduce costly inventories of unsold vehicles as the recession has dried up demand for new cars.