Valeo and Michelin, two of France’s biggest car parts suppliers, are taking the axe to investment as they struggle to cope with the sharp downturn in orders from carmakers and try to conserve cash.

Michelin, one of the world’s biggest tyre makers, said investment spending would drop 45 per cent this year to €700m ($903m), while Valeo, the components and systems group, will cut its budget by a third in an attempt to keep finances under control amid dire market conditions.