CEO of U.S. Tire Company Gets into Fight with All of France

Michel Spingler / AP

Employees of the Goodyear tire company in Amiens are seen in front of their plant, in northern France.

What’s French for “cat fight”? Ask American businessman and would-be industrial investor Maurice Taylor, who has provoked la France entière by claiming the “French workforce gets paid high wages but works only three hours.” In doing so, Taylor mockingly dismissed French government invitations to invest in a struggling tire factory in northern France.

“How stupid do you think we are?” Taylor asked in a letter sent to French Industrial Renewal Minister Arnaud Montebourg, who had asked the CEO of the Titan International tire company to invest in a money-losing Goodyear plant in Amiens. The notoriously hard-edged Taylor maintained the factory suffers from the same lame work ethic, coddled labor force, union domination and protection of feckless politicians he seems to see plaguing the wider French economy.

“You can keep the so-called workers. Titan has no interest in the Amiens North factory,” Taylor said in a double-barrel missive revealed by the French media Feb. 20. “Titan is going to buy a Chinese tire company or an Indian one, pay less than one euro per hour and ship all the tires France needs.”

(MORE: Goodyear’s French Nightmare)

That’s exactly the kind of business ethos assured to enervate Montebourg—a crusading leftist cabinet member who has repeatedly locked horns with bosses over job cuts. Last year Montebourg threatened to nationalize French units of Arcelor Mittal over what he called the steel giant’s “lying” by ignoring promises not to close plants. In replying to Taylor’s broadside, Montebourg scorned  the CEO’s “extremist insults” of France as a reflection his “perfect ignorance of what our country is.”

Perhaps, but Taylor’s tarring of the Amiens operation succeeded to obtain what may have been a broader objective: using it as a broad brush to tarnish a purportedly pampered, work-averse French society—one the 1996 GOP primary candidate doesn’t seem too fond of. Indeed, in deriding the Goodyear workforce thatgets paid high wages but…get(s) one hour for breaks and lunch, talk for three and work for three,” Taylor seemed to be shaking a fist at the entire French socioeconomic model and protective welfare state that American ultra-conservatives hate as iconic of enormous government and sky-high taxes. Given that vibe, it was little wonder that French politicians from both left and right joined pundits denouncing Taylor’s attack. Even Laurence Parisot—head of France’s main pro-business advocacy organization—objected to the American’s comments as “a shocking generalization” and “unacceptable.”

Those weren’t the only emotions surging. The French daily le Parisien actually sounded hurt Feb. 21 when it ran a front-page headline declaring, “No, the French Aren’t Lazy!” Reports elsewhere revealed that Goodyear employees working reduced hours in Amiens do so at management’s requests in response to slumping activity. Harder-hitting French commentators took aim at the avowedly right-wing Taylor, and poking fun at his ferocity-inspired nickname, “the Grizz”—a bearish association he shares with Sarah Palin. True to that company, left-leaning daily Libération described Taylor as “an extremist used to provocations.” In other words, exactly the kind of American businessperson France and most Europe wants nothing to do with.

(MORE: Too European To Fail: New EU Banking Safety Net Takes Shape)

So who wins the battle of the trans-Atlantic stereotype bashing? Perhaps Taylor, judging from the sense of hurt in France. But numbers suggest the French don’t come off too badly when Taylor’s Gallic stereotypes are viewed from other angles.
Statistics compiled by international organizations routinely find French workers among the most productive in the world in terms of GDP per hours worked. Numbers from 2011 rank, French employees seventh globally in per hour productivity—three places (but less than 3% behind) the U.S. workforce. French labor productivity per hour actually exceeds that of Germany, the U.K., and the U.S. when calculated in adjusted euro figures. That reputation-defying efficiency has also helped make France the ninth-largest recipient of foreign direct investment in 2011 with $40.9 billion—third among European Union members. Not bad for a place where everybody supposedly takes lunch breaks and talks all day.

Yet rather than advancing what some critics say may be manipulated stats, Montebourg preferred to match Tayor blow for blow. “Can I remind you that Titan, the company you head is 20 times smaller than Michelin, the French technology leader with a global reach, and 35 times more profitable?” Montebourg replied to Taylor’s letter. “That shows the extent to which Titan could have learned and gained enormously from a French base.”

Perhaps someone now may ask the Grizz what the French is for touché.

39 comments
famulla5
famulla5

The world economy is in crisis. Unemployment in Western Europe rises towards the 20 million mark. America faces the deep-seated problem of the twin deficits, the federal budget and the balance of trade. Vast tracts of the former Soviet empire are on the brink of economic collapse. Japanese companies, faced by the deepest recession since the war, are on the verge of breaking the long-standing and deep-rooted social convention of lifetime employment.

The orthodoxy of economics, trapped in an idealised, mechanistic view of the world, is powerless to assist.

In Western Europe, the economics profession eulogised the Exchange Rate Mechanism and monetary union, despite frequent bouts of massive currency speculation and the inexorable rise of unemployment throughout Europe during its years of existence. Teams of economists descend on the former Soviet Union, proclaiming not just the virtues but the absolute necessity of moving to a free-market system as rapidly as possible. Such prescriptions involve the establishment of market economies of greater purity than those contemplated by Ronald Reagan and Margaret Thatcher. But despite governments in the former Soviet bloc doing everything they are told, their economic situation worsens.

From the pensioned security of their vast bureaucracies, economists from the International Monetary Fund and the World Bank preach salvation through the market to the Third World. Austerity and discipline are the hallmarks of the favoured policies of the IMF throughout the world, yet its own salary bill has risen by 38 per cent in the last two years, and is budgeted to rise by a further 22 per cent in 1994.

On a more mundane level, economic forecasts are the subject of open derision. Throughout the Western world, their accuracy is appalling. Within the past twelve months alone, as this book is being written, forecasters have failed to predict the Japanese recession, the strength of the American recovery, the depth of the collapse in the German economy, and the turmoil in the European ERM.

Yet to the true believers, within the profession itself, the ability of economics to understand the world has never been greater. Indeed, in terms of influence in the world the standing of the profession appears high. Economics dominates political debate, to the extent that it is scarcely possible to have a serious political career in many Western countries without being able to repeat more or less accurately its current fashionable orthodoxies. Television seeks out the views of economists on Wall Street and in the City of London, anxious that the viewing public should be informed of the impact of the latest

monthly statistic on the entire economy over the coming years. The numbers of students seeking to read economics grew dramatically during the 1980s.

Academically, the discipline seems to have developed enormously, particularly over the past decade, the mathematical sophistication especially having increased in terms both of theoretical work and of the approved methodologies of applied economics.  I thank you FirozaliA.Mulla DBA This is from the book DETH OF ECONOMICS very apt here 

famulla5
famulla5

1. Cancel your cable or satellite service.

Cancel it. Pay the termination fee if you have to. Get a small antenna and a converter box (if you need one) and just watch what you can get over the air.

The average cable/satellite bill, last I heard, was around $86 a month. That’s a pretty sizeable chunk of an average American family budget, adding up to above $1,000 a year. There’s energy savings here, too – if you’re not powering up a cable box, your energy bill will drop a bit.

The average American watches 2.8 hours of television a day. Without television to constantly watch, you’ll suddenly find that you have more time to do all of the things that you’ve been meaning to do but somehow haven’t had the time for.

2. Pull everything out of your pantry.

Pull every single foodstuff you have in your pantry out on the table. You’ll probably need the floor, too. Empty out your cupboards as well, and even your refrigerator and freezer.

The goal is to get a real look at all of the food you already have on hand in your home. For most Americans, it’s a lot of food.

Now, start planning meals and finding recipes that use all of this stuff. If you have tons of spices and flour and canned vegetables and soups and other things, it shouldn’t be too hard to come up with ways to use all of this food for meals. Whenever you come up with a recipe for a meal, set all of the ingredients for that meal aside with a sticky note that indicates what the meal you’re going to make with it actually is. If you’re splitting ingredients, note that on your sticky notes.

You’ll probably be able to come up with dozens and dozens of meals by doing this. After that, come up with a meal plan using all of those meals. Make a long list of all of the meals you have stuff for, then put the ingredients back in your pantry with the ingredients for the meals you plan to make soon near the front and the other ingredients further back.

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You should be able to go a very long time without having to go to the grocery store for anything other than a handful of perishable staples, like milk or eggs or fresh fruit and veggies. For the next few months, you just slashed your grocery bill by more than half. Now, let’s slash it some more.

3. Drink water.

Stop drinking all of the non-water beverages that you consume on a daily basis and stick to water. Water is basically free, it’s good for you, and it quenches your thirst. It doesn’t add calories to your system, either.

When you finish up your current batch of soda or sports drinks or coffee or tea, don’t just go out there and buy some more. Just drink water. Whenever you’re thirsty, get a cup of water instead of the beverage you might crave.

Sure, you might get a few caffeine withdrawal headaches. Don’t worry – they’ll go away soon enough.

In the short term, you’ll have a smaller grocery bill. In the long term, you’ll have improved health, too.

4. Turn off your climate control and open the windows.

If the temperature outside is between 50 F and 90 F, we turn off all climate control, open up the windows, and let the breeze blow through our house. For us, this covers all of the year except for a couple months during the winter and perhaps a week or two at the peak of summertime.

Depending on where you live, you might be able to toss open the windows right now. Even if that’s not your situation, I’m willing to bet that you’ll be able to do this at some point in the very near future.

I’ve found that if you do this for a day, it becomes very tempting to do it the next day… and the next day… and the next day. The fresh air and the breeze flowing through your home makes everything seem lighter and more enjoyable.

These changes sound hard, but each of them has significant upside. They each trim your monthly spending in a significant fashion and they each bring other benefits to your life – better health, more time, more fresh air, and so on. Give one of these challenges a shot today. You may be better leader tomorrow I thank you FirozaliA.Mulla DBA

famulla5
famulla5

As of today, there is 4 days left until the start of sequester. How much serious negotiations can go on in that period of time when everyone has a hard and fast position on  what the results should be. There is no United States of America. This is only a fallacy like the USSR was. Obviously when the states joined the USA there was different political climate. Maybe it is time to divide this country up into  Liberal and Conservative portions. They can each have their own President and legislature so that they can actually govern as their people want. It may sound difficult, but it could be done. Each state would be free to join the half that they voted on. We could have a common currency and joint defense, but on other things we could decide on what things we wanted to control. Remember all the current government departments that we have set up are for the purpose of control. Remember we have divorces in this country when partners are so far apart on their views of how to live their lives together that the decide to part. We had very stringent laws in the past in many states about the availability of divorce while today many states operate under no fault rules. People would likely be happier living in a state that had a government that they felt was more agreeable. However many politicians are against letting people do things that would make them happier. I thank you Firozali A.Mulla DBA

famulla5
famulla5

WE DEFINIYELY SEE USA divided First the White House and Congress created a potential fiscal crisis, agreeing more than a year ago to once-unthinkable government wide spending cuts in 2013 unless the two parties agreed to alternative ways to reduce budget deficits. Now that those cuts are imminent — because compromise is not — they have created one of Washington’s odder blame games over just whose bad idea this was. The battle lines over cuts that are scheduled to begin on Friday, known in budget parlance as sequestration, were evident on Saturday inPresident Obama’sweekly addressand theRepublican response, by Senator John Hoeven of North Dakota. “Unfortunately, it appears that Republicans in Congress have decided that instead of compromising, instead of asking anything of the wealthiest Americans, they would rather let these cuts fall squarely on the middle class,” said Mr. Obama, who proposed a substitute mix of spending cuts and revenues from repealing some tax breaks for wealthy people and corporations He added: “Are Republicans in Congress really willing to let these cuts fall on our kids’ schools and mental health care just to protect tax loopholes for corporate jet owners? Are they really willing to slash military health care and the Border Patrol just because they refuse to eliminate tax breaks for big oil companies?” For Republicans, who oppose any tax increases, Mr Hoeven countered: “He blames Congress for the sequester, but Bob Woodward, in his book ‘The Price of Politics’ sets the record straight. Woodward says it was President Obama who proposed — and promoted — the sequester.” What makes this debate over blame so odd is that both sides’ fingerprints — and votes — are all over the sequestration concept. The point of sequestration, in fact, was to define cuts that were so arbitrary and widespread that they would be unpalatable to both sides and force a deal. That won Republicans’ support for increasing the government’sdebt limitin 2011, and averted the nation’s first default. The Republican-led House and Democratic-led Senate each passed the accord overwhelmingly, and Mr Obama gladly signed it. The idea for sequestration did come from the White House, as news accounts made clear at the time.Jacob J. Lew, then MrObama’s budgetdirector and now his nominee for Treasury secretary, was the main proponent. Mr Lew, who was a senior adviser to the House speaker in the 1980s, lifted language from a 1985 law he helped negotiate, the Gramm-Rudman law. Two Republican senators to be “a sword of Damocles,” poised to strike both parties unless they compromised on deficit reduction, conceived it. I thank you Firozali A.Mulla DBA  

klebour
klebour

"Perhaps someone now may ask the Grizz what the French is for touché."

I believe the French for touché is touché!

mrbomb13
mrbomb13

MEMO TO TIME MAGAZINE:  Montelbourg is comparing apples to oranges when looking at Titan v. Michelin.

Michelin's size, reach, and profitability dwarfs that of Titan's.  Thus, those profits may be used for expansionary activities (i.e. purchasing), or for re-investing in the employees.  As per the article, Michelin employees are the benefactors of this kind of corporate re-investment (whether union-mandated or not).

On the other hand, with lesser available profits, Titan is nowhere near as able to provide such luxuries to its employees.  Titan must exercise added caution when deciding how to plot the strategic goals of the organization.  Therefore, Titan cannot afford a 1/3 ROI (Return On Investment) from investing in a company who's workers are productive for only 1/3 of the work-day.

So, before TIME Magazine deems Montelbourg's comment as "touche-worthy," TIME might want to re-examine the implications of Monelbourg's illogical comparison.

Greg_LW
Greg_LW

@TIME @TIMEWorld He was talking of the disincentivised & non competitive undemocratic EU where failure is subsidised & achievement penalised

jerry48
jerry48

@Greg_LW and the US government never subsidised GM for instance !  for sure in Europe the  definition of democracy is not quite the same as TAYLOR's ! with all the uncontroled free trade and fierce competition in the States you should be doing so much better than Europe ! (is it the case ? )  Why didn't TAYLOR just say NO ! not interested ? because he is one right wing conservative hater and didn't want to miss the oppotunity to bash the French ! if YOU are ready to take his $1.50 per hour jobs well GOOD FOR YOU AND GOOD LUCK ! but the thing is he is not even offering them to americans because he knows what the answer would be ! instead he deals with communist CHINA ! what a great guy ! keep up the good work dude !

Greg_LW
Greg_LW

@TIME @TIMEWorld US tyre company CEO enrages the French http://t.co/7eHUPevI9r Clearly the truth hurts. Political Correctness no defence!

Hadrewsky
Hadrewsky like.author.displayName 1 Like

Ah kinda mean really... FREEDOM FRIES FOREVER WITH A SIDE OF FREEDOM TOAST!

 It sure would be nice if factory workers were treated like people deserving a living wage for hard and dirty work.

TheCycad
TheCycad

@moorehn France has a much healthier work ethic than we do in the US. & Why listen to the opinion of some loudmouthed rubber merchant?

rentpayer
rentpayer

@TIME @TIMEWorld France 60 000 000 - ceo 1

WilliamBarnes
WilliamBarnes

Then Maurice'd go ballistic if he ever went to Brazil and saw what goes on THERE! And they pay more taxes (through the nose) than anybody else.

DavidHamilton
DavidHamilton

Note that Taylor bragged about only paying his Chinese workers the equivalent of $1.50 an hour.

felsull
felsull

Don't mess with the French: @TIME: France runs amok after U.S. CEO's bashing of the country's work ethic | http://t.co/Vj2E0kFVnm

WilliamBarnes
WilliamBarnes

@felsull Why are the French (mostly young) so unsupportingly stuck up? It's like the current generation somehow thinks that they're the epitome of the French culture (God forbid) responsible for all French contribution to the world, when they are really just  predatores, scavengers and arsonists.

jerry48
jerry48

@WilliamBarnes well I guess I am a little devil since I much prefer hell here in France to your paradise run by angels like TAYLOR ! end of story !

WilliamBarnes
WilliamBarnes

@jerry48 @WilliamBarnes What paradise? What hell? are you putting 'words' in my mouth? I don't know if it's hell in France or paradise in the States though from the news I read (all of it) they really don't look like good places to raise a kid, nowadays. 

manxmidge
manxmidge

“@TIME: France runs amok after U.S. CEO's bashing of the country's work ethic | http://t.co/bbowFk8zez (via @TIMEWorld)” < so true tho!

mdzakiansari
mdzakiansari

I have managed over a hundred thousand workers in India - my country, for years and I understand our men. Even our Indian workers will find this fellows comments as insensitive and insulting to all workers of the world.

Nowhere1111
Nowhere1111

Not only arrogant, but apparently uninformed as well. Sounds like the typical greedy NeoCon CEO who ships jobs to the 3rd world.

Ianonim
Ianonim

Une vision US sur l'affaire Titan RT @TIME: France runs amok after U.S. CEO's bashing of the country's work ethic http://t.co/Fs9QS6xrrV

jerry48
jerry48 like.author.displayName 1 Like

for decades these " TAYLOR " guys told us that communism is bad ( and I totally agree with that ! ) and we went fighting communism all over the globe !  meanwhile,  these " TAYLOR " guys are making business with communist CHINA, using their modern slavery system, killing thousands of jobs in America and Europe ! my question is : HOW STUPID DO YOU THINK WE ARE ? "

WilliamBarnes
WilliamBarnes

@jerry48 I guess you yourself would be the best informed and most inclined to answer that question. Why did it take so long? The world does have to change, yes indeed. More people must voice their opinions from all levels of society, not just 'the media moment' victims.

BillPenson
BillPenson

@TIME @timeworld go France! US work patterns & practices are appalling

jerry48
jerry48 like.author.displayName like.author.displayName 2 Like

" “Titan is going to buy a Chinese tire company or an Indian one, pay less than one euro per hour and ship all the tires France needs.”

and he will ship also to the US ! it shows how much this guy cares for american workers and for his own country !!! LOL

famulla5
famulla5

Goes back to year when we had this. Now we do not have. Only shows the difference since then Ideas for a cross-Channel fixed link appeared as early as 1802,but British political and press pressure over compromised national security stalled attempts to construct a tunnel eventual successful project, organised by Eurotunnel, began construction in 1988 and opened in 1994. The project came in 80% over its predicted budget. Since its construction, the tunnel has faced several problems. Fires have disrupted operation of the tunnel. Illegal immigrants and asylum seekers have attempted to use the tunnel to enter the causing a minor diplomatic disagreement over the siting of the Stagnaterefugee camp, which was eventually closed in2002. I thank you Firozali A.Mulla DBA

RonaldPinter
RonaldPinter

This is what I call a stuck up ars..le.

How I wish I was his boss , I'll put him to clean all the latrines

rorywong654
rorywong654

Last chance to save the world,don't buy or have anything to do with US.

Jodun
Jodun

@rorywong654 Funny, I was going to say the same about China.

WilliamBarnes
WilliamBarnes

@Jodun @rorywong654 How about saying it about the whole damn human race. It's the same all over the globe. Egoistic rulers and poor populations. The saying is this: "All over the world, the sh!t is the same. The only thing that changes are the flies." The human race MUST EVOLVE OR DIE OFF!

trevorlarge
trevorlarge

@infonewsrugbyie can you please stop posting non-rugby news to the hashtag rugbyunited?

NamecNassianer
NamecNassianer

“Titan is going to buy a Chinese tire company or an Indian one"

Note to self: never buy a tire made by Titan Tire.