By Mathias de Rozario and Alessandro Parodi
(Reuters) -French tyre maker Michelin’s plans to accelerate investments in the United States to reduce the potential impact of tariffs will not affect its strategy in Europe, Chief Financial Officer Yves Chapot said on Wednesday.
Reported plans to ramp up production at its 35 U.S. sites in response to President Donald Trump’s trade tariffs will help to meet more than the 70% of U.S. demand accounted for by local sites in 2024, Chapot told reporters after the company reported full-year results.
“We’re not going to disinvest in Europe to invest in the United States,” he said.
A slowdown in sales of new cars and trucks in Europe contributed to a 5.1% decline in Michelin’s full-year sales volumes, broadly in line with the consensus expectation in a company-provided poll.
Sales of tyres for new passenger cars and light commercial vehicles fell by 7% in Europe as consumers delayed purchases amid uncertainty around electrification and as some countries, especially Germany, cut electric vehicle subsidies, Michelin said in a statement.
European sales of tyres for new trucks were down 20%.
The European market accounted for 36% of Michelin’s total sales in 2024, while North America, including Mexico, accounted for 38.6%.
The group, which makes tyres for cars, aircraft, bicycles and industrial equipment, proposed a dividend of 1.38 euros ($1.43) per share, slightly higher than the 1.35 paid on its 2023 results but lower than the 1.46 euros expected by analysts.
The company said it expects growth in its segment operating income at constant exchange rates and the generation of free cash flow before acquisitions of more than 1.7 billion euros in 2025.
That is despite a sharp decline in the original equipment business and more depressed markets overall in the first half, Chapot said.
It confirmed its outlook for 2026.
($1 = 0.9667 euros)
(Reporting by Alessandro Parodi and Mathias de Rozario in Gdansk; Editing by Jan Harvey, Kirsten Donovan)
