Les Echos newspaper reported that Michelin plans to stop production at the Joue-les-Tours truck tyre plant and to cut 700 out of 926 jobs in France.

According to the report, today, June 10th, French tyremaker Michelin told labor unions about its plans to cut 700 jobs, a result of the European downturn. The company will stop tyre production at its plant in Joué-lès-Tours, lay off 700 employees and offer transfers for the other 226 workers. Michelin did not comment on the report but said that an official announcement regarding this issue will be made in the following days.

“We have an obligation to inform staff representatives as a priority,” a company spokeswoman said.

The debt crisis and the austerity measures continue to affect the auto industry in Europe, which heads towards a 20-year low. Faurecia, Ford, PSA Peugeot Citroen and other companies have already announced they will lay off thousands of employees due to low demand.

“This is like a hammer blow,” Force Ouvriere union leader Jean-Claude Mailly said on France 2 television. “With 700 jobs (going) out of 900 it’s hard to imagine what will be left.”

Michelin has 63,000 workers in Europe, including 24,000 in France, and anonymous sources say that the company will soon announce new investments, of around 500 million euro, to upgrade its plants in France.

Source: Reuters


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