Joint Venture For PAX and EMT Formed By Goodyear And Michelin

Goodyear and Michelin have announced an historic agreement whereby they will cooperate to provide auto manufacturers and consumers with significant new choices in run-flat tyre systems.Recognising the growing demand of consumers for increased comfort, improved handling and the security of run-flat capability, the two companies will cooperate in the research and development of advanced run-flat technologies through a joint venture. Run-flat systems will also provide auto manufacturers with greater opportunities in vehicle design, use of interior space and styling flexibility.

These innovations should lead to further advances in rolling resistance for reduced fuel consumption .By contributing resources for joint run-flat research and development, Goodyear and Michelin will dramatically accelerate the availability of advanced run-flat systems for auto manufacturers and consumers. They also will provide manufacturers with additional sourcing opportunities as the two companies develop complementary but competitive products for their markets.

Each company brings advanced run-flat system experience to the joint venture, which will be headquartered in the Netherlands. Goodyear will license its extended mobility technology and pressure monitoring system patents to Michelin. Michelin will license the PAX System to Goodyear.

These technologies will become the foundation for developments of future generations of run-fat systems.To address consumer concerns, in 1994, Goodyear launched its Extended Mobility Tyre EMT), If a complete loss of air pressure occurs, the EMT tyre, with reinforced sidewall inserts and a low pressure warning system, allows the consumers continued operation of their vehicles until they can reach a service facility. This concept was designed to fit standard wheels.

In 1996, Michelin launched the PAX System. It consists of four key features: a tyre with a unique bead lock; a runflat insert that allows the vehicle to continue to operate if tyre pressure is lost; a special wheel that accommodates both the unique bead and run-flat insert, and a tyre pressure warning system. Today, PAX System has become a new standard.

Goodyear and Michelin are convinced, after an analysis of other tyre/wheel combinations, that PAX System is the best platform for incorporation of future tyre concepts in new vehicle designs. Initially, Goodyear and Michelin will focus on accelerating the availability of the current PAX System. For those Original Equipment manufacturers, customers who wish to have run-flat capability on conventional wheels, both companies will continue to propose solutions, utilising EMT technologies and their improvements.

An important research and development joint-venture activity will be to exploit the synergies in exchanging their irrespective run-flat technolgies to develop enhanced solutions.The agreements allow Goodyear to explore incorporation of its EMT technology into the PAX System standard while Michelin will take advantage of Goodyear’s extensive background in run-flat technologies, including tyres, pressure monitoring systems, run-flat inserts and lubricants.In addition, Goodyear and Michelin have agreed to promote PAX System, and its technical enhancements, to the OEMs.

In order to accelerate the widespread commercial availablity of future run-flat systems to consumers, the companies have also entered into an aftermarket agreement. The companies will offer consumers easy access to interchangeable parts through a qualified global network of trained service technicians, when maintenance and service are required. To ensure vigorous competition, both companies will continue to compete in the sale of run-flat systems and the provision of aftermarket services.

Both Goodyear and Michelin will coordinate a consumer and industry information campaign to accelerate the introduction of run-flat systems and promote their benefits to all consumers worldwide.In Febuary last year, Michelin and Pirelli announced that they would cooperate to further develop the PAX system, so how does Pirelli view this latest move? Said Marco Tronchetti Provera, Pirelli’s chairman and CEO: “Pirelli considers positively the agreement announced today by Michilin and Goodyear, for a joint collaboration in the PAX System technology. In fact, the more tyre manufacturers that are involved in this project, the more original equipment manufacturers will be inclined to accept this new standard.

He went on: “We are a privileged partner in the PAX system since February 1999, and are contributing significantly to the development of this innovative technology. We are convinced that the involvement of Goodyear will further accelerate the development and the promotion of PAX System to OE customers.”According to the terms of the partnership agreement between Pirelli and Michelin the sharing of technologies within the two groups will include the results of developments coming from new joint ventures such as the one announced with Goodyear, whilst Pirelli will continue to develop also its own proprietary run-flat technology in order to offer a wider range of solutions to the market within the TMS (Total Mobility System) concept.