Michelin ( OTCPK:MGDDF ) CEO Florent Menegaux expects supply chain problems to promote a pullback and recession into the next year.
The French CEO told Bloomberg in an interview that persistent issues in supply chains, specifically in semiconductors are likely to continue into the next year. He reported that the tire manufacturer itself is currently operating at 86% rather than the near full-capacity it had forecast previously. Menegaux added that new developments in Russia’s invasion of Ukraine and new lockdowns in China could also stand to extend pressure on the auto industry and broader global supply chains across industries.
He told the outlet he does not expect these impacts to be reversed effectively until 2024.
“We have experienced an accumulation of crises which is unprecedented,” he said. “We now know how to operate in this hectic environment.”
Read more on the price hikes the company and its peers have pursued t o contend with rampant inflation .
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Michelin CEO expects mild recession in 2023, rebound in 2024