ERJ staff report (TB)
Paris -- Group Michelin hopes to trim as much as $1.4 billion out of its operating costs in the coming five years through internal austerity and efficiency measures, according to Managing Partner Jean-Dominique Senard, speaking to the financial community today.
That amount of cost trimming represents a cut of about 5 to 6 percent of costs, according to figures presented.
Mr. Senard said Michelin is looking to trim $275 million to $415 million from selling, general and administrative costs, $275 million from raw materials costs and $700 million to $835 million from efficiencies in manufacturing and transportation/logistics.
These three areas represented more than $26 billion in costs last year.
Mr. Senard Michelin expects to achieve these savings through â€œdrastically improving efficienciesâ€ in its various operating areas. He said the program started several months ago.
From Tire Business Rubber & Plastics News Automotive News (A Crain publication)