PRESS
RELEASE
Clermont-Ferrand, June 22, 2017
The Michelin Group
presents its global reorganization project
to better serve its customers
On March 16, 2017 Michelin
launched a project for a new organization that would boost growth
by adapting its operations to meet the evolving demands of its
customers and employees. This new organization is designed to
improve the Company's reactivity and maintain competitiveness,
enabling it to smoothly meet future challenges.
The purpose of this in-depth
transformation is to improve customer satisfaction, empower the
teams, simplify operating modes and digitalize the Group. The
transformation would reinforce both the Company's international
scope and its France-based sites, notably Clermont-Ferrand.
10 new
Regions would be given more operational responsibilities
Michelin plans to create 10
Regions in charge of sales development and customer relationship
management, accountable for their results: Africa - India -
Middle-East, South America, Central America, North America, Eastern
Asia and Australia, China, Central Europe, Northern Europe,
Southern Europe and Eastern Europe.
14 Business Lines
would develop offers for each customer category
The purpose of these Business
Lines would be to develop offers to satisfy global customer groups
with similar needs around the world. They would have a key role in
building the strategy of the Group and would steer their business
results in their respective customer segments.
8 Operational
Divisions would provide expertise and support for the Regions and
Business Lines:
'Research & Development',
'Service Technology Development', 'Manufacturing', 'Supply Chain',
'Marketing & Sales Support', 'Purchasing', 'Operations Quality
Assurance' and 'Corporate and Business Services' (CBS).
A focused
Corporate Group
In order to streamline the Group's
central operations to boost reactivity, the Corporate divisions
would focus on their strategic missions.
The Group's reporting would be
based on consolidation of business lines and would be very similar
to the current one.
Implementing this new
organization, and the simplified operating modes it generates,
would significantly impact jobs only in the U.S. and France.
- Concerning the U.S., the
number of jobs would be reduced by approximately 450 in central
functions between 2018 and 2021. The large majority would result
from natural attrition and retirement. Actually, 1,500 employees
would leave the company in the same period.
- Concerning France, the
transformation coincides with a natural phenomenon: a significantly
rejuvenated workforce. By 2021, 5,000 employees would leave the
Group in France, the majority due to retirement, and around 2,000
of these would be in Clermont-Ferrand.
Michelin wishes to seize this opportunity to
successfully transform its organization while supporting each
employee during this evolution.
To this end, Michelin France plans to:
-
recruit more than 3,500 people externally in
France by 2021, including 1,000 in Clermont-Ferrand;
-
start new activities in Clermont-Ferrand and
other sites in France, creating 250 new jobs, including highly
qualified jobs, especially in the fields of high-technology
materials and digital;
-
set up a voluntary early retirement package for
waged employees and managers at the Clermont-Ferrand site;
-
progressively reach the target size of the
future organizations, without forced redundancies. To achieve this,
the Company would not replace 970 retirees, between now and 2021 in
Clermont-Ferrand;
-
offer a position and career track in the new
organization, by supporting job evolution via an adapted management
and training system.
In order to be closer to our customers and improve
competitiveness, we would locate 290 employee and manager positions
in other countries where the Group is operating. This move was
already taken into account through the management and partial
replacement of retirees.
By January 1, 2018 each Group employee would be
offered a position in the new organization. This project would not
directly impact on Michelin production plants worldwide.
To finance this project, the Michelin Group would
record a provision in non-recurring charges in the company's
consolidated accounts at December 31, 2017.
Investor Relations
Valérie Magloire
+33 (0) 1 78 76 45 37
+33 (0) 6 76 21 88 12 (cell)
valerie.magloire@michelin.com
Matthieu Dewavrin
+33 (0) 4 73 32 18 02
+33 (0) 6 71 14 17 05 (cell)
matthieu.dewavrin@michelin.com
Humbert de Feydeau
+33 (0) 4 73 32 68 39
+33 (0) 6 82 22 39 78 (cell)
humbert.de-feydeau@michelin.com
|
Media Relations
Corinne Meutey
+33 (0) 1 78 76 45 27
+33 (0) 6 08 00 13 85 (cell)
corinne.meutey@michelin.com
Individual Shareholders
Jacques Engasser
+33 (0) 4 73 98 59 08
jacques.engasser@michelin.com
|
DISCLAIMER
This press
release is not an offer to purchase or a solicitation to recommend
the purchase of Michelin shares. To obtain more detailed
information on Michelin, please consult the documents filed in
France with Autorité des Marchés Financiers, which are also
available from the www.michelin.com/eng
website.
This press
release may contain a number of forward-looking statements.
Although the Company believes that these statements are based on
reasonable assumptions as at the time of publishing this document,
they are by nature subject to risks and contingencies liable to
translate into a difference between actual data and the forecasts
made or inferred by these statements.
CP_Projet de Reorganisation
Mondiale_EN
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Michelin via Globenewswire
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