Tyre market data as of end-February 2020, released today by the Michelin Group, show the initial impact of the COVID-19 public health crisis, with the global Passenger car and Light truck tyre market down +9% year-on-year and the Truck tyre market down +16%.
First of all, the Group is taking all the measures required to safeguard the health of its employees, in close cooperation with local authorities in every host country. The Group has decided to close, for at least one week, its production facilities located in the European countries most affected so far by the pandemic.
When presenting its 2019 results, the Group issued its guidance for 2020 excluding the systemic effects of the COVID-19 crisis. Now that the global economy is in the midst of a systemic crisis, the Group’s 2020 guidance is no longer relevant, without any possibility at present of assessing the potential impact. The Group is taking all of the initiatives required to attenuate as much as possible the negative consequences of the crisis on segment operating income and free cash flow. In addition, the Group has the sources of financing in place to deal with the uncertainty surrounding the crisis.
The Group will update its annual tyre market forecast when it releases its first-quarter revenue figures.