Michelin Cuts Global Production

Michelin issued a terse press release on Monday, December 22, 2008 indicating that it has “significantly cut back on operations in most plants worldwide.” The cuts are in response to sharp declines in tire demand in November in all European, North American, Asian and South American markets. According to the release, the current economic environment has led to exceptional costs due to under-utilization of capacity, which will amount to nearly €150 million in the company’s fourth-quarter accounts. With the production cut-backs, Michelin says it is taking the necessary steps to effectively manage inventories and maintain its flexibility moving into 2009.

Here is the press release.