Michelin: OE Customers Prepared to Pay Extra for “Green Tyres”

Analysts from the Société Générale report that Michelin representatives have, during a Roadshow event, expressed the opinion that OE manufacturers would be prepared to spend extra for environmentally friendly “green tyres.” The willingness to spend extra for such a product would no doubt be aided by CO2 emission reductions currently on the EU agenda; reductions of 120 to 130 grams per kilometre may in future be required.

Should Michelin’s predictions be correct, it will not only be the environment that benefits; while environmentally friendly tyres currently cost the consumer more to purchase, the manufacture of “green tyres” requires less raw materials, thus lowering production costs.