Michelin rejects claims of offshoring, misuse of public aid in France

Clermont-Ferrand, France – Michelin Group has defended its restructuring strategy in France after a television report accused the group of relocating production, cutting jobs despite strong profits and lacking transparency over state support.

The programme Complément d’Enquête, broadcast 18 Sept, alleged that the company shifted output from Cholet and Vannes to sites abroad while benefiting from public aid.

In response, Michelin said the claims “do not reflect the reality” of its commitment to France, where it has invested €2.6 billion over the past decade, including €1.5 billion in industrial modernisation.

Michelin linked the closure of the Cholet and Vannes plants in 2024 to a “very significant and continuous fall” in the heavy goods vehicle and van tire markets and declining competitiveness in Europe.

The group said the decision affected 1,254 employees but was taken “only as a last resort” after other options were considered.

The remaining volume from the two sites was redistributed to existing factories in Golbey, France; Cuneo, Italy; and Olsztyn, Poland.

Michelin stressed that “no new production sites were created abroad” to replace the two French sites, adding that France remained the country with the largest number of its factories in Europe.

The French group went on to note that the €1.9 billion net profit reported in 2024 reflected the results of its global operations across more than 170 countries.

In France, Michelin said, industrial activities are “loss-making,” as explained by industrial director Pierre-Louis Dubourdeau during his interview for the programme.

“It is unfair and inaccurate to directly link overall profits to the French industrial situation,” Michelin said, noting that dividends also derive from global rather than local results.

Michelin also stressed that in 2024, it paid out €964 million in dividends and not €1.4 billion as claimed in the report.

It added that employee compensation and investments represented the majority of its value distribution.

Elsewhere, Michelin rejected allegations of non-disclosure of public aid, saying it had provided “detailed information” to a Senate commission of inquiry.

Confirming that it received support under the 'competitiveness and employment tax credit' scheme from 2013 to 2021, Michelin said the support came without “any conditions or guidelines for its possible uses.”

Michelin said it nevertheless tracked investments, such as €4.3 million allocated to La Roche-sur-Yon to modernise workshops and machinery.

Two machines were later moved to Spain before the site closure in 2019, while others were shipped internationally after operations ended.

Michelin said it has approached state authorities to discuss “voluntary reimbursement” of the tax credit equivalent.

In 2023, Michelin said it received €40.4 million through the research tax credit, adding that in return, it has been investing €400 million annually in R&D in France.

The group reported contributing more than €220 million in taxes and €1.5 billion in payroll in France last year.

“Considering public aid without putting into perspective all the contributions made by Michelin in France is a partial and therefore biased view of reality,” the group concluded.