BFGoodrich Parent Company Cites Operating Capacity In Decision To Close Longtime Tuscaloosa Plant

TUSCALOOSA, AL — Michelin North America says its decision to permanently shutter its longtime BFGoodrich tire plant in Tuscaloosa was due to it operating "well below" capacity.

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The company also released new details on Thursday outlining the benefits package that will be offered to salaried employees as the company prepares to wind down operations at its BFGoodrich tire manufacturing plant in Tuscaloosa.

As Patch previously reported, employees were informed Thursday morning of the move that will ultimately eliminate approximately 1,200 jobs by the end of 2028.

Michelin confirmed it will gradually cease tire production and mixing operations at the Tuscaloosa facility, with production beginning to ramp down in phases early next year before concluding by the end of 2028.

The parent company then said nearly all BFGoodrich tire production will be consolidated at the company's plant in Fort Wayne, Indiana.

Michelin said the decision was driven by both of its BFGoodrich plants operating well below their designed capacities, creating structural inefficiencies that are no longer sustainable.

Michelin said it expects to record approximately $250 million in non-recurring expenses related to the restructuring in its 2026 financial results.

In a benefits summary distributed to employees and obtained by Tuscaloosa Patch, Michelin said it will support workers throughout the transition while balancing the need to complete an orderly shutdown.

The company said salaried employees will receive lump-sum retention bonuses of $10,000 if they remain employed through Dec. 31, 2026, provided they remain in good standing and meet performance expectations.

Employees who separate from the company will receive severance pay equal to three weeks of base pay for every year of employment, with a guaranteed minimum of 12 weeks of pay regardless of tenure.

Michelin said there will be no maximum cap on separation pay.

The company also announced that retirement benefits will include automatic full vesting of performance shares and 401(k) matching contributions at each employee's designated separation date.

Health insurance coverage will continue at no additional cost beginning the month after an employee leaves the company for the duration of their separation pay period, up to a maximum of 12 months.

For workers who do not transfer to another Michelin facility, the company said it will provide up to 12 months of outplacement assistance or 12 months of continuing education credit.

Employees accepting transfers within North America will receive relocation assistance under existing company policy, along with one additional week of paid vacation to facilitate their move.

Michelin also said salaried employees will receive priority consideration for open salaried positions elsewhere within the company's North American operations.

The company noted that employees will have opportunities to meet with personnel representatives to discuss their individual benefits before the first separations begin in mid-2027.

Michelin said Thursday that plant operations in Tuscaloosa are scheduled to resume under normal production schedules on Monday, June 29, with Michelin emphasizing that enhanced security measures will be in place throughout the transition.

The Tuscaloosa BFGoodrich plant was acquired by Michelin in 1990 and manufactures passenger car tires.

The Tuscaloosa plant was originally constructed to produce materials during World War II and manufactured its first tire on Oct. 23, 1946.

It is the seventh-largest employer in Tuscaloosa County, along with being the third-largest manufacturer behind Mercedes-Benz U.S. International in Vance and Warrior Met Coal in Brookwood.

Tuscaloosa Mayor Walt Maddox issued a statement Thursday after the news broke, saying his heart is heavy for the thousands of families who will be affected by this decision.

"While the full impact is not yet known, I want to assure our community that the City of Tuscaloosa will stand side-by-side with our state and local partners to support affected workers, stabilize our economy, and determine the best path forward," he said. "For 80 years, BF Goodrich has stood as an anchor for Tuscaloosa County, strengthening our economy, shaping our workforce, and becoming a meaningful part of Tuscaloosa County’s identity. For decades, it has been one of the County’s largest and most enduring employers."

He then said representatives from the City of Tuscaloosa, the state, Tuscaloosa County, the Economic Development Authority and the Chamber of Commerce will convene this afternoon at City Hall to begin developing a coordinated response.

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