Michelin North America (MNA) will significantly cut production at four of its U.S. plants as the company reacts to downturns in the replacement and OE markets.
The reductions will impact MNA’s passenger and light truck/SUV tire plants in Tuscaloosa, Ala., Ft. Wayne, Ind., and Opeilka, Ala. Some 40 percent of the workforce at those plants will be on temporary layoff, MNA said, an estimated 1,500 people.
The cutback will last up to eight weeks, MNA said.
The company said eligible employees will receive state unemployment benefits during the slowdown period, and supplemental income per the company’s contract with the USW.
At press time, the reductions will not affect MNA’s other U.S. or Canada plants, though there have been reports of some production slowdowns at other facilities.
As demand slows, other tiremakers have take action to reduce production. Bridgestone Americas and Goodyear both have reduced output. Cooper announced last week that it was examining its U.S. production with an eye toward closing at least one plant. Kumho has delayed construction of its planned U.S. plant in Macon, Ga. (Courtesy of Tire Review)