PARIS, Nov 5 (Reuters) - Michelin will close

two factories in France by early 2026 affecting about 1,250

jobs, the French tyre maker said on Tuesday, the latest cutback

in a European auto industry battling subdued demand and cheap

Asian competition.

Labour unions had already alerted workers to the possible

closure of the sites in Cholet and Vannes in western France,

which make tyres for small vans and other tyre components.

CGT, one of France's largest unions, told BFM TV it will

call on all Michelin staff to strike to support workers at the

two factories.

The CFDT union called on management to revisit the closures

in negotiations with unions and also urged the industry minister

to push Michelin to seek other solutions, according to a

statement.

Separately, German machine and car parts maker Schaeffler ( SCAFF )

announced plans on Tuesday to lay off 4,700 people in Europe

after its operating profit almost halved in the third quarter.

Michelin said the market share of entry-level car, light

truck and heavy duty tyres had increased significantly over the

last decade, hitting premium categories, and leading to

overcapacity at some Michelin plants.

The two sites to be closed have been "severely impacted by

the structural transformation of the passenger car and light

truck and truck tyre markets and worsening competitiveness of

Europe, notably due to inflation and rising energy prices", it

added.

It has halted production at both plants through Nov. 11 to

give management and the unions time for group and individual

discussions with employees, it said.

Michelin added that it will support affected employees,

offering some early retirement or internal transfers, as well as

support for finding new jobs.

The company said it would record a provision of

approximately 330 million euros ($360 million) in non-recurring

expenses in its consolidated financial statements as of Dec. 31.

Michelin announced last year the closure of two German

heavy-duty truck tyre sites and last month lowered its annual

profit forecast due to a more marked slowdown than expected in

the auto market in the third quarter.

It employs nearly 15,000 people in France at 15

manufacturing plants.

($1 = 0.9179 euros)

(Reporting by Makini Brice and Dominique Patton; Editing by

Sudip Kar-Gupta, Mark Potter and Emelia Sithole-Matarise)