Michelin CEO Predicts 'Mild Recession', Recovery in 2024

The transcript discusses the impact of multiple global crises, including inflation, the war in Ukraine, and supply chain disruptions, on business operations. It highlights the challenges of passing increased costs to consumers and the indirect effects of semiconductor shortages. Economic forecasts suggest a mild recession, with interest rates necessary to control inflation. The transcript also covers sustainable rubber production and Michelin's strategic decisions regarding its Russian operations.

What are some of the crises mentioned that have impacted businesses recently?

• Technological advancements and automation

• Political stability and economic growth

• COVID-19, supply chain bottlenecks, and the war in Ukraine

• Natural disasters and climate change

How are businesses managing the increased costs due to inflation?

• By reducing employee salaries

• By passing costs to consumers through price increases

• By seeking government subsidies

• By cutting down on production

What is the estimated increase in input costs for businesses in 2022 compared to the previous forecast?

• €3 billion

• €400 million

• €1 billion

• €2.4 billion

What percentage of Michelin's revenue is dependent on car makers?

• 50%

• 25%

• 13%

• 5%

What is the expected timeline for economic recovery according to the transcript?

• By 2026

• By mid-2023

• By 2024

• By 2025

What is Michelin's approach to sustainable rubber production?

• Owning 100% of their rubber supply

• Integrating a portion of their supply and promoting sustainable practices

• Relying solely on third-party suppliers

• Discontinuing the use of natural rubber

What is Michelin's current stance on operating in Russia?

• They are unaffected by geopolitical changes

• They plan to expand operations in Russia

• They have transferred activities to a local unit and are not currently operating

• They are increasing production in Russia