Pierre Michelin
Strategic Concepts & Mechanics
Primary Evidence
"Incorruptible, blending in, tough on the job, and not talkative, they gradually invest in the factories and offices under the authority of Pierre Michelin and Pierre Boulanger. “The two Pierres,” said André Citroën, “on whom I will rebuild my temple.” The salaries of the main collaborators are authoritatively cut by thirty to thirty-five percent. Expense reports are scrutinized. Company cars are removed. Michelin, who before getting involved in the business had the Traction tested in Montlhéry, in Auvergne, and even in Sweden, knows the weaknesses of the model perfectly and knows they can be corrected quickly."
"At Quai de Javel, the new owner makes sharp cuts. Six thousand layoffs—five thousand workers and one thousand white-collar workers—are decided by Pierre Michelin. No more family scions (those called “hickeys”), no more secretaries overly concerned with their elegance, no more workers whimsical about their schedules, no more expenses that aren’t absolutely necessary, no more adventurous epics, no more fanfare. André Citroën’s closest collaborators are thanked and let go. The parent company in Clermont-Ferrand continues to send—often in “submarines”—some of its trusted men to reorganize the business from top to bottom, take back control of the staff, and identify overly disruptive unionists."
"It will ultimately be Pierre Michelin, alone, who will make the decision after lengthy hesitation: by taking control of his main client, wouldn’t he risk alienating the other automobile manufacturers? The risk of a boycott is high. Pierre Michelin knows this. Nevertheless, he gives his approval. Edouard Michelin, to whom the case will be presented a few weeks later, will eventually give his endorsement."