Michelin (MGDDF.PK) cut 700 jobs at a factory in France in response to the slump in the European automobile market. The company also launched a plan to spend €800M ($1.1B) to boost exports and improves its market position.
Tire stocks trade lower after Bridgestone (BRDCF.PK) warns that it may reduce its H2 production, with the usual suspects - Europe and China - the rationale behind the cuts. Decliners: CTB -2.6%, GT -3.6%, AMTY -6.9%, MGDDF.PK -6.9% in Paris trading.
A sizable rubber supply deficit is set to 180 into a massive glut thanks to a material slowdown in China. The resulting price drop will cut income for producers, but slash costs for tire makers like Goodyear (GT), Bridgestone (BRDCF.PK), Michelin (MGDDF.PK).