CLERMONT-FERRAND, France (Feb. 13, 2012)—Michelin hopes to trim as much as $1.4 billion out of its operating costs in the coming five years through internal austerity and efficiency measures, according to Managing Partner Jean-Dominique Senard.
That amount represents a cut of about 5 to 6 percent of costs, according to figures presented.
Senard said Michelin is looking to trim $275 million to $415 million from selling, general and administrative costs, $275 million from raw materials costs and $700 million to $835 million from efficiencies in manufacturing and transportation/logistics.
These three areas represented more than $26 billion in costs last year.
Senard said Michelin expects to achieve these savings through “drastically improving efficiencies” in its various operating areas. He said the program started several months ago.