European Tyre Volumes Remain Weak

In July the European passenger car tyre market fell 7 per cent, with truck tyres falling 3 per cent, according to Michelin sourced figures. In contrast, the ailing North American market appears to be beginning to recover, according to Deutsche Bank estimates. Here the market was flat in July with truck tyre sales actually growing 3 per cent. Business in the emerging markets is reportedly strong with both Brazil and China both growing at 20 per cent plus rates.

Looking forward to 2009, Deutsche Bank predicts that raw material prices will decline, making a “significant positive impact on Michelin’s operating profit income even if, volumes remain weak.” According to the analysts, a 1 per cent volume deterioration will have a negative impact on operating profit income of 70 million euros.