Michelin North America has announced it is proposing a cost-reduction plan that would cut annual operating costs by $125 million. Senior executives outlined the objectives, which they said would be detailed in an action plan to be released in July.
“The automotive and trucking industries have had some good years recently and we have shared in the success,” said Jim Micali, president of Greenville, SC-based Michelin North America. “But we also know that our cost structure needs to be improved so we can weather difficult market conditions and prosper during good times.”
The company said it wants to avoid speculation prior to the finalization of the action plan but said it appears likely that personnel reductions will be required. The company noted that if layoffs are necessary, it will make every effort to achieve them through normal attrition.
