Michelin will lay off more than 1,500 employees as it restructures its activity in Germany

The French group Michelin will restructure its activities in Germany before the end of 2025, a measure that it attributed to the lack of competitiveness of its factories in this country and that will affect more than 1,500 employees, the company reported today.

This Tuesday, the multinational informed the 1,410 employees of the Karlsruhe and Trier plants, as well as the new tire and semi-finished products factory in Homburg, of its decision to gradually cease industrial activities within a period of two years.

Michelin also plans to move its customer service center for Germany, Austria and Switzerland from Karlsruhe to Poland, affecting another 122 workers.

The decision does not affect the truck tire retreading business in Hamburg, the brand’s largest in Europe, nor the passenger car tire plant in Bad Kreuznach, which will continue production, according to the French company.

“This inevitable decision was very difficult and painful to make. The commitment of our employees, the progress made and the investments made in recent years in the affected centers can no longer compensate for the strong pressures” of the competition, Michelin’s Northern Europe region director Maria Röttiger said in a statement.

The French group explained that in recent years the European market has experienced a significant increase in imports of low-cost tires, which impacts the premium segment and causes a loss in market share.

Furthermore, the recent health and geopolitical crises and their impact on energy, logistics and raw materials prices, together with high inflation, have caused negative effects on the competitiveness of German industry, he added.

The company indicated that the future of Michelin’s activities in Germany, as in the group’s other regions, depends on the context and market demand, the competitiveness of the plants and the quality of the dialogue between the company and its social partners. , indicated the company.