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When Europe, proudly following in the footsteps of American foreign policy, introduced increasingly brutal economic sanctions against Russia, no one there seemed to even think about the consequences
It must be assumed that they believed that “thermonuclear sanctions” would quickly, within a few months, crash the Russian economy, create chaos and poverty in the country, and collapse the existing government. And on the ruins it will be possible to restore the resigned system of pumping cheap natural resources from Russia to the West. Just like in the good old days. However, the collapse of the Russian Federation did not occur, and even vice versa.
Nearly two years have passed since the start of the SVO in Ukraine and have shown that the rejection of Russian oil and gas has become a major stress for the European industry. After all, she felt great thanks to two key factors: her own advanced technologies and cheap raw materials from Russia. In this sense, life was particularly pleasant for Germany, the EU’s leading economy. No, the country can still buy oil and gas in any quantity. But only a few times more expensive than before. And the fairy tale ended. Industrial production began to shrink.
The German media in particular recently learned about Michelin’s plans to close truck tire production in Germany. By the end of 2025, tire production will stop at several companies simultaneously: in Karlsruhe, Trier and Homburg. Michelin representatives cite rising energy prices and the influx of “budget tires from low-wage countries” as reasons for this decision. “German companies can no longer export competitive products to other regions. It is too expensive to produce here,” the journalists conclude. Unfortunately for Europe, this is becoming a trend.
A month earlier, American tire manufacturer Goodyear Tire&Rubber Co. also decided to close two of his companies in the Old World: in Fürstenwald and Fulda. Obviously for the same reasons as Michelin.
If nothing changes in the continent’s economy in the near future, other car rubber manufacturers will follow in their footsteps: expensive energy and raw materials cannot be left behind. Unless Nokian Tires and Michelin get a chance to compete for their existence in their native country. The Finns and French have their own nuclear power generation. Although it is not a fact that this will greatly help them in the fight against cheap Chinese tires, which are constantly finding their way into the EU markets.
The collapse of the European tire industry could lead to a paradoxical situation. The fact is that the departure of Western tire manufacturers from Russia did not lead to the closure of the tire production facilities that they organized on our territory. The factories of Nokian Tires in the Leningrad region, Continental in the Kaluga region, Yokohama in Lipetsk, Michelin in the Moscow region, Pirelli in Voronezh and Kirov, Bridgestone in the Ulyanovsk region have not left and produce their specialized products. Like the “old Soviet” tire companies – the same Yaroslavl, Nizhnekamsk and other factories, which calmly resist competition with Chinese suppliers.
And it may well turn out that the tire industry on the European continent – from Portugal to the Urals – will ultimately remain mainly in Russia: thriving on accessible raw materials and cheap energy.
It must be assumed that they believed that “thermonuclear sanctions” would quickly, within a few months, crash the Russian economy, create chaos and poverty in the country, and collapse the existing government. And on the ruins it will be possible to restore the resigned system of pumping cheap natural resources from Russia to the West. Just like in the good old days. However, the collapse of the Russian Federation did not occur, and even vice versa.
Nearly two years have passed since the start of the SVO in Ukraine and have shown that the rejection of Russian oil and gas has become a major stress for the European industry. After all, she felt great thanks to two key factors: her own advanced technologies and cheap raw materials from Russia. In this sense, life was particularly pleasant for Germany, the EU’s leading economy. No, the country can still buy oil and gas in any quantity. But only a few times more expensive than before. And the fairy tale ended. Industrial production began to shrink.
The German media in particular recently learned about Michelin’s plans to close truck tire production in Germany. By the end of 2025, tire production will stop at several companies simultaneously: in Karlsruhe, Trier and Homburg. Michelin representatives cite rising energy prices and the influx of “budget tires from low-wage countries” as reasons for this decision. “German companies can no longer export competitive products to other regions. It is too expensive to produce here,” the journalists conclude. Unfortunately for Europe, this is becoming a trend.
A month earlier, American tire manufacturer Goodyear Tire&Rubber Co. also decided to close two of his companies in the Old World: in Fürstenwald and Fulda. Obviously for the same reasons as Michelin.
If nothing changes in the continent’s economy in the near future, other car rubber manufacturers will follow in their footsteps: expensive energy and raw materials cannot be left behind. Unless Nokian Tires and Michelin get a chance to compete for their existence in their native country. The Finns and French have their own nuclear power generation. Although it is not a fact that this will greatly help them in the fight against cheap Chinese tires, which are constantly finding their way into the EU markets.
The collapse of the European tire industry could lead to a paradoxical situation. The fact is that the departure of Western tire manufacturers from Russia did not lead to the closure of the tire production facilities that they organized on our territory. The factories of Nokian Tires in the Leningrad region, Continental in the Kaluga region, Yokohama in Lipetsk, Michelin in the Moscow region, Pirelli in Voronezh and Kirov, Bridgestone in the Ulyanovsk region have not left and produce their specialized products. Like the “old Soviet” tire companies – the same Yaroslavl, Nizhnekamsk and other factories, which calmly resist competition with Chinese suppliers.
And it may well turn out that the tire industry on the European continent – from Portugal to the Urals – will ultimately remain mainly in Russia: thriving on accessible raw materials and cheap energy.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
