Michelin targets €600m savings through to 2020

Basel, Switzerland – French tire maker Michelin is expecting to save more than €600m over the 2019-2020 as it plans to deploy its competitiveness plan “faster” in the coming year.

In an 11-Dec investors presentation in Basel, the company also said it expected to gain an additional €150 million year-on-year in EBIT in 2019, helped by the acquisition of Fenner and Camso.

Presenting its preliminary 2019 forecast, Michelin said it expected roughly 1.5% growth in the PCR/LT segment, driven by a 10% growth in demand for tires with rim sizes larger than 18 inches.

Truck tires, Michelin expects, will remain flat, while specialities will grow 4-5%.