More than 1,500 employees are affected by Michelin’s decision: the manufacturer will no longer produce truck tires in Germany – among other things because energy costs are too high.
Michelin wants to end the production of truck tires in Germany. In a corresponding announcement on Tuesday, the French company with its German headquarters in Homburg spoke of a “difficult but inevitable decision” that would affect a total of more than 1,500 employees. The tire manufacturer cited increased energy costs and competition from “budget tires from low-wage countries” as reasons.
By the end of 2025, the production of new truck tires and the production of semi-finished products should be completed at the Karlsruhe, Trier and. locations Homburg be set. In addition, the customer contact center will be relocated from Karlsruhe to Poland, the company explained. In this way, Michelin is reacting to long-term negative trends and poor economic prospects.
Michelin is facing competition from low-wage countries
Between 2013 and 2022, the market share of cheap Tires from primarily low-wage countries increased by eleven percentage points – at the expense of the premium and medium price segments, Michelin explained. This development leads to a loss of market share.
In addition, the “recent health and geopolitical crises” and their effects on energy, logistics and raw material prices as well as the persistently high inflation have had a negative impact on the competitiveness of the industrial location Germany impaired. The local production sites are no longer able to export competitively to other regions.
The Mining, Chemical and Energy Industrial Union (IGBCE) sharply criticized the planned closures. “The planned clear-cutting is wrong. Michelin just wants to maximize profits and is letting go of highly committed and highly qualified employees to do so,” criticized Matthias Hille, head of the IGBCE Mainz district.
The union will not simply accept the job cuts. Instead, clever strategies are needed to react to the changed conditions. Hille wanted to continue working on alternative concepts and called on Michelin to stick to its promise and put people at the center.
The tire manufacturer stated that it would “support our employees as best as possible and accompany them individually into a new future.” Michelin will continue to be present in Germany in the future and will modernize other production sites. The car tire factory in Bad Kreuznach and the truck tire retreading facility, which is located in Homburg, remained unaffected by the announced closures.
The current tire production from Germany for the European market will be taken over by other plants within Europe in the future. Tires that are intended for markets outside of Europe should also increasingly be produced outside of Europe.