In a recent investor call, Michelin revealed that its first-quarter sales are expected to be slightly below market expectations due to stronger seasonality in the first half of 2025. The French tire manufacturer is preparing for added market volatility stemming from U.S.-imposed tariffs but remains confident in its local-to-local strategy to navigate through these challenges.

It's significant to note that Michelin has over 23,500 employees working across its production facilities in the U.S., Canada, and Mexico. The company expressed the need for further clarification on recent U.S. executive orders regarding tariffs, with no definitive conclusions drawn as of now. In 2024, the North American market, including Mexico, represented a substantial 38.6% of Michelin's total annual sales.

Despite uncertainties surrounding tariffs, Michelin highlighted that its U.S. exports are relatively limited, minimizing the potential impact of retaliatory tariffs from other countries. The company shared that it anticipates a 6% to 8% decline in volumes in the first quarter, mainly due to reduced car demand post-2024. Analysts had previously forecasted quarterly sales of 6.67 billion euros and a volume drop of 2.6%.

Regarding U.S. President Donald Trump's tariffs, Michelin mentioned that a significant portion of its tires sold in the U.S. are domestically produced. The company also pointed out that recent tariff announcements have not affected natural rubber, and the U.S. has sufficient capabilities for synthetic rubber production. Michelin is set to release its first-quarter results on April 24.