Michelin considers its position on European capacity

ERJ staff report (BC)

Paris – Groupe Michelin may have a successful 2012, comments Maxime Amiot in Les Echos, with its operating income increasing by 24.5%, but it could be forced to make economies in Europe if the market does not recover.

Florent Menegaux, general manager of the group’s car tire division is quoted as saying: "We do not rule out considering whether the situation is sustainable in terms of the evolution of the market.

"We are in a situation of overcapacity. … The situation is worse than in the 2008-2009 crisis as it is more protracted. Our market has declined sharply since late 2011, and all segments are impacted."

Michelin met with union representatives on 7 March to discuss the future of some of its French plants.

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Les Echos article