Michelin Tyre Prices to Reflect Oil Costs

Michelin is introducing a new pricing system for its tyres, a move it says comes in response to soaring oil prices. This revised pricing is intended to distinguish the effect the price of petroleum-based raw materials (which account for approximately 60 per cent of the cost of a passenger car or light truck tyre) from the intrinsic value of Michelin tyres, and the company will thus adjust its prices based on a scale index according to changes in oil prices.

The French manufacturer states the introduction of this new price system for customers is a pledge of its transparency and clarity in the relationships it has with vehicle manufacturers. The system will take effect on April 1 and applies to all passenger car and light truck tyres sold to vehicle manufacturers worldwide.