Clermont-Ferrand - June 6, 2016
COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN
At the Investor and Analyst Day organized on June 6 at the Ladoux Technology Center in France, Michelin announced that it was scaling up its competitiveness plan, targeting cost savings of €1.2 billion between 2017 and 2020, i.e. €300 million per year, on the back of expected annual savings of some €200 million to 250 million in the period 2012-2016.
The Group intends to use several levers to achieve a further €500 million to €550 million reduction in overheads:
At the same time, the cost of raw materials is expected to decline by between €150 million and €200 million over the same period thanks to the ongoing optimization of raw material content and the engineering of lighter tires.
In addition, the programs set up over the past five years to improve manufacturing efficiency will be pursued:
Other levers have also been activated, including a 30% reduction in unit investment costs achieved through efficiency programs, the reorganization of engineering processes, and systems to independently manage performance and progress.
In light of all these measures, the Group has set a target of reducing production costs by between €450 million and €500 million between 2017 and 2020.
All of the Investor Day presentations will be posted on the Group's website ( www.michelin.com/eng ) in real time.
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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.