Michelin CEO predicts mild recession and auto market rebound by 2024
At this point, automatic recovery looks more likely to occur in 2024 absent a deep recession, he said, adding that he forecast a “mild” global economic slowdown for now.
While the global car market could rebound to its pre-pandemic level that year, European sales could lag as consumers hesitate over what type of vehicle to buy amid tougher environmental regulations, which that can affect the value of their cars on the used market, he said.
Menegaux said tires for new cars represent only 13% of the group’s turnover.
The French company has been indirectly hit by semiconductor shortages as the delivery of equipment used to make tires has been delayed, he said.
Michelin is also grappling with rising transport costs – partly spurred by a shortage of truckers after thousands of Ukrainian drivers returned home to fight the Russian invasion – and soaring energy prices. , especially in Europe “where it will be rare and expensive”, he added. said.
The company has raised tire prices three times in the past six months to protect the group’s margins from an estimated 2.4 billion euro ($2.44 billion) increase in its tire costs. inputs this year, Menegaux said. “Fortunately, our customers are always willing to pay for our tyres,” he said.
“We have experienced an unprecedented accumulation of crises,” he said. “We now know how to operate in this hectic environment.”