Industrial flu in Germany and France takes year-end impact on Michelin and Bridgestone

Two major Basque multinational tire companies, Michelin and BridgestoneMeasures to adjust production were announced after failing to meet expectations set in the first half. The French company’s main plant in Vitoria has spent the summer at a happy pace, better than expected, but autumn once again brings to light all the unknowns of the European automotive industry.Bridgestone Basauri’s situation is even worse and has exceeded the flexibility agreed in the agreement. It can be seen that Forced to turn to ERTE.

The two wheelmakers employ nearly 5,000 workers in the Basque Country (Michelin also has La Sarthe factory Bridgestone is a small warehouse attached to Basuri For use only), has been one of the pillars of exports this year. If the total sales of Basque companies have not collapsed, this is largely due to the good export rates of tires, one of the important products in Basque commercial presentations along with vehicles. Benzauto parts and fuels Patnol.

However, the situation was different in September and October, especially amid concerns that the European automotive industry will come to a standstill in the final stages of 2023. France and Germany

The industry’s large tractors, where most tire production is concentrated in the Basque Country, have shown signs of weakness this autumn. German industry has not picked up since the spring, and the latest data for September were particularly bad, with an annual decline of more than 4%.

Europe’s major powerhouse was already on the brink of recession in late 2022 and early 2023, although it ultimately achieved a few tenths of a percent of GDP growth in the first months of the year. Industrial engines impounded since summer, The specter of recession They’re back, and official forecasts in Berlin already point to an economic downturn at the end of this year and a weak recovery in 2024.

Notice from Continental

Numerous car outages affected the entire chain.german giant Continental Airlines A few days ago, the company announced that it would cut thousands of jobs worldwide in order to save 400 million euros from 2025, which was a serious warning given the group’s influence in the industry.

On the other hand, France’s industrial development has been more modest in recent years, and although the data is milder than in other countries, the autumn opening data is also worrying.French industry did not grow at all (0%) in September compared with the same month in 2022, although compared with August Activity dropped 2%. About half of all tires produced in the Basque Country and sold outside Spain go to German and French cars, with slightly more in the latter.

Bridgestone Basauri, until October

Yes Michelin Victoria The last few weeks of the year allow room to adjust the calendar to suit needs. In the case of the Bridgestone plant in Biscay, the 20 days of flexibility were exhausted, so the ERTE machine was put into operation. The Basauri factory, which employs nearly 900 workers and whose production is mainly sold to the European market, will be affected from December 17 to 30, in addition to plans in principle There is still a 63-day regulatory period until October 2024.

The details of the document will be negotiated with social parties, although in this case the depth of the measure is worrying. The Japanese multinational company had already proposed ERTE at this time in 2022, but the impact was ultimately limited.The company’s approach now makes us think The next exercise is very complicated For the industry, yes, the document will be kept under review if demand improves.

Improvement forecasts set by Bridgestone in early 2023 have yet to materialize, ultimately pointing to lower production at Basauri about 15% Compared to 2022. The decline is similar to Michelin’s original estimate for Victoria this year. As the months passed, factory management began to make up for the year’s losses in order to “prune” production again in the fall.