Photo: Michelin on Facebook
Michelin is the latest automotive company to announce that it's temporarily stopping its Russia-based activities. The tire manufacturer has confirmed on Tuesday that it would no longer keep its factory open and would stop exports. The timeframe remains subject to change.
Michelin is one of the biggest tire manufacturers in the world. The French company has been running a factory situated in Davydovo, near Moscow, for almost 18 years now. It has 750 employees that work to achieve an annual production number of over two million tires. Most of these products end up on the Russian internal market, while small numbers have been sent regularly to some Scandinavian countries.
As of today, Michelin is suspending its activities in Russia entirely. The plant will be closed and the employees will be sent home. There’s no indication regarding their payment, but as this is not a complete and final closure, we can safely assume the payroll will still be made on time. After all, Michelin is a global player in the car industry and it can’t risk the sake of its employees because politics got in the way. What it can do is join others in sending a strong signal to decision makers.
Michelin will also stop exports to Russia, according to a statement cited by Reuters. No products of the French company will reach the belligerent country from now until the decision to act otherwise will be taken.
According to Michelin’s own assessment, the tire manufacturer’s business in Russia amounts to almost 2% of the group’s total and just 1% of the global production of its ring-shaped components.
Michelin joins hundreds of other companies that have left or suspended their operations in the country that attacked Ukraine.
Apart from Stellantis and Renault's Avtovaz that blamed only supply issues, major carmakers have already closed their businesses for the moment, because of the war. We’ll see when and if things start to turn around. For now, an important share of the private sector is taking a moral stance on what’s happening in Eastern Europe.
As of today, Michelin is suspending its activities in Russia entirely. The plant will be closed and the employees will be sent home. There’s no indication regarding their payment, but as this is not a complete and final closure, we can safely assume the payroll will still be made on time. After all, Michelin is a global player in the car industry and it can’t risk the sake of its employees because politics got in the way. What it can do is join others in sending a strong signal to decision makers.
Michelin will also stop exports to Russia, according to a statement cited by Reuters. No products of the French company will reach the belligerent country from now until the decision to act otherwise will be taken.
According to Michelin’s own assessment, the tire manufacturer’s business in Russia amounts to almost 2% of the group’s total and just 1% of the global production of its ring-shaped components.
Michelin joins hundreds of other companies that have left or suspended their operations in the country that attacked Ukraine.
Apart from Stellantis and Renault's Avtovaz that blamed only supply issues, major carmakers have already closed their businesses for the moment, because of the war. We’ll see when and if things start to turn around. For now, an important share of the private sector is taking a moral stance on what’s happening in Eastern Europe.
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