Despite production cutbacks...

Michelin committed to N.A. manufacturing

By: Mike Manges

“We’re adjusting our inventory levels” to meet demand, says Dick Wilkerson, chairman and president of Michelin North America Inc.

Despite the current economic climate and supply-and-demand imbalances that have forced various manufacturers to temporarily clip production, Michelin North America Inc. (MNA) remains committed to North American manufacturing, says MNA Chairman and President Dick Wilkerson. (Wilkerson replaced former MNA Chairman and President Jim Micali this past August when Micali retired.)

That doesn’t mean MNA is immune to the impact of reduced consumer tire demand.  The tiremaker is in the middle of an eight-week production curtailment at three of its BFGoodrich plants that began on Nov. 1. “If the market is down, we have to take our manufacturing schedules down to meet market demand.” However, on a long-term basis, “we have not changed our focus on manufacturing in North America.”

There are several advantages to this strategy, he notes, including substantial cost savings. “Working capital goes up significantly when you go offshore because of increased inventory. You’re not able to respond quickly to the market. Plus, when you manufacture in the zone where you sell, you partially hedge currency fluctuations.”

« Previous  |  1  2  |  Next »

Related Topics: Michelin, MNA, Wilkerson

Recent News

• Kyle LeDuc and Toyo Tires, Six wins and counting
• Points for Mahindra at streaming Le Mans
• Find Bosch parts on your iPhone, iPad
• Two Continental tires named a 'Best Buy'
• Retired Cooper chief Fitzgerald passes away
• Dominant Lorenzo takes victory in MotoGP
• Pirelli and F1: cracking the barcode
• AAIA holds elections for board of directors
• Nominate someone for TIA’s Hall of Fame
• Right to Repair bill jumps first hurdle