Michelin has been accused of being unreasonable in relocating production from France
Michelin defended its restructuring strategy in France after being accused on the TV show Complément d'Enquête of moving production abroad and cutting jobs in the country despite high profits, as well as lacking transparency in receiving state aid. It was claimed, in particular, that Michelin had moved production from sites in Cholet and Vannes to other countries while receiving government support.
In response, Michelin stated that the accusations do not reflect the real situation regarding the company's commitments in France, where its investments over the last 10 years have totaled 2.6 billion euros, 1.5 billion of which were invested in modernizing production. Michelin also linked the closure of the Cholet and Vannes plants to a significant and sustained decline in demand for truck and commercial vehicle tires, as well as a decrease in the competitiveness of the facilities on the European market. The decision to close the plants affected 1,254 employees, and the company emphasizes that it was made only after considering all other options.
Production was relocated to plants in La Guerche (France), Cuneo (Italy), and Olsztyn (Poland), and Michelin emphasizes that "no new sites abroad were created to replace the two French facilities", and notes that France remains the country with the largest number of the company's production facilities.
The tire manufacturer's statement also says that the net profit of 1.4 billion euros received in 2024 was the result of the company's work in more than 170 countries, and Michelin's production director Pierre-Louis Dubourdeau stated that "industrial activity in France is loss-making".
"It is unfair and incorrect to directly link overall profit to the situation in French industry", — says Michelin, adding that dividends also depend on global, not local, business results, and the main part of the profits is distributed between employee salaries and investments.
Michelin also rejects accusations of lack of transparency in receiving state aid and states that it has provided the authorities with all necessary information in full, emphasizing that the assistance was provided without any conditions for its use.
Michelin adds that in 2023, it received 40.4 million euros in tax subsidies, and at the same time, the company invests around 400 million euros in France every year in research and development. "Assessing state aid without taking into account Michelin's overall contribution to the development of French industry is a biased approach", — the company said.