Michelin Archives - Page 236 of 321 - Tyrepress

Tyre industry pioneers, Michelin has a long history. Having begun in 1889, Michelin is now the second-largest tyre manufacturer in the world after Bridgestone and larger than both Goodyear and Contineantal.

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A Strong Argument in Support of Tubeless Tyres

The recent bad press surrounding Chinese made tyres and inner tubes has not deterred one man from giving Chinese tyre products his own unintended and unorthodox vote of confidence. Staking his life on the quality of a round black rubber object to an extent that few of us would dare, 41 year old Cheng Yanhua from China’s Hubei Province undertook a six week odyssey down the Yangtze River on a truck tyre inner tube.

Cheng’s adventure began on July 1, when the enthusiastic amateur adventurer embarked from the southwestern city of Chongqing. Spending at least ten hours a day on a raft that owes its origins more to John Dunlop or Andre Michelin than to any credible boat builder, Cheng paddled and drifted 3,000 kilometres down the Yangtze to Shanghai, where the river meets the Pacific ocean. And despite the absence of even the most rudimentary safety equipment and widespread flooding of the Yangtze this summer, the tyre-bound sailor completed his journey displaying few ill effects. Cheng commented that the greatest physical discomfort during his 44 days afloat came from having to tuck his legs into the inside of the ring for extended periods of time.

15th August 2007/by Tyrepress Editors

New Year Price Rise for Michelin North America

Michelin North America has announced upcoming price rises for its replacement market motorcycle and scooter tyres. As of the start of next year prices for these items will increase by 8 per cent, with these new prices applying to all tyres invoiced after January 1.

The tyremaker has not disclosed its reasons for the price rise, however the announcement comes at a time when raw material prices are once again on the rise.

15th August 2007/by Tyrepress Editors

Michelin to Establish New PCR Plant in Mexico

Michelin plans to capitalise on the energetic Mexican automotive market through investing US$740 million over the next four years in the establishment of a new factory. The tyremaker will set up the plant in Silao, in the central state of Guanajuato, and production is scheduled to begin in 2010. According to Jim Micali, chairman and president of Michelin’s North America unit, the new factory will employ 1,300 staff and produce passenger car and SUV tyres for the domestic and US export markets.

“This is one of the most dynamic automotive and tyre markets in the world,” said Micali during in a ceremony with Mexican President Felipe Calderon. Numerous car manufacturers, including the US “big three”, have adopted Mexico as a low cost manufacturing base for exports to the US and other markets. Michelin said in a statement that the Guanajuanto facility is part of a $1.2 billion investment plan for the region.

14th August 2007/by Tyrepress Editors

Michelin to Use Pneu-Logic Tyre Inspection Technology

Michelin has signed a five-year contract that will see the French tyremaker utilise tyre inspection technology produced by Advanced ID Corporation. On August 6 the RFID technology specialist announced that its tyre division, UK based Pneu-Logic, will provide Michelin’s French reseller EDP with a hardware platform and software application specifically designed to meet the needs of Michelin’s global Business Partners. This product has been named URM and implementation of the technology has begun in more than ten European countries.

Ken Field, Pneu-Logic’s Sales Director for Europe, stated, “This is an excellent example of working with a very good reseller and Michelin to deliver a solution with substantial benefits to Michelin’s partners and customers. Based on the Pneu-Logic platform, EDP has developed the URM software to meet the exact needs of Michelin’s partners who deliver much of Michelin’s world renowned service.”

7th August 2007/by Tyrepress Editors

Michelin North America Plans Major Plant Expansion Project

(Akron/Tire Review) Michelin North America announced plans to spend as much as $350 million on improvements and expansion projects at all of its “major manufacturing facilities” in South Carolina. The four-year project will add some 100 jobs, the company said.

While MNA didn’t give plant-by-plant specifics, the company did say that the project includes capacity boosts for its OTR and X One super wide tyres. Other aspects of the project will boost production of tyre components at its semi-finished goods plants, and general improvements.

The company said its investment and job growth is based on finalising agreements with state and county governments.

“With increasing competition from Asian imports and high raw material costs, Michelin will remain competitive in North America by continuing to manufacture tyres in more efficient operations with skilled professional employees,” said Jim Micali, MNA chairman and president.

7th August 2007/by Tyrepress Editors

Overview: Aeolus Tyre

The Aeolus Tyre Co. Ltd., which was founded in 1965, is well known in Europe for its truck and OTR tyre brands Aeolus and Henan. The company operates production facilities in the city of Jiaozuo (Henan province) and produces about 2.7 million tyres per annum. In 2005 Aeolus generated an annual turnover of about 420 million euros, and according to company publications by last year turnover had already increased to 520 million euros. In total, Aeolus can produce tyres of 416 specifications and is currently investing in the expansion of its production capacities of 1.2 million units per year. In addition to this, chairman of the board Cao Chaoyang has recently announced that Aeolus will build another tyre factory in which the company plans to produce 5 to 6 million passenger car radial tyres from 2008. Last year the company sold its products in 140 different countries.

Since the end of 2003 Aeolus Tyre Co. Ltd. has been partly listed on the Shanghai Stock Exchange. A legal dispute between Michelin and Aeolus with regards to the infringement of design rights has been settled.

3rd August 2007/by Tyrepress Editors

Analysts See Oliver Acquisition as Positive Move for Michelin

Financial analysts are predicting Michelin will continue to grow its retread business following the purchase of Cooper Tire & Rubber subsidiary, Oliver Rubber Company. “This would mean that Michelin is growing in the tyre retread business,” Deutsche Bank analysts wrote, adding: “The group has currently approximately 700 million euros of revenues in retread. This is potentially a very interesting market which should grow (penetration rate of only 37 per cent in Europe versus 85 per cent in North America, and should be highly profitable [with] significantly less capital expenditure and raw material costs. We believe that this strategic move will give vertically integrated tyre Co a significant competitive advantage.

1st August 2007/by Tyrepress Editors

Michelin Buys Oliver Rubber for $69 million

Michelin North America, Inc. has announced that it has signed a definitive agreement to acquire Oliver Rubber Company, the Cooper Tire & Rubber Company tread rubber and retreading equipment subsidiary, for $69 million. The acquisition is subject to final due diligence as well as Federal Trade Commission and U.S. Department of Justice approval. Following the acquisition, Oliver will operate as a subsidiary of Michelin North America, Inc.

According to an official statement on the subject: “This acquisition will complement the manufacturing capability and service network of Oliver with that of the Michelin Retread Technologies (MRT) network, enabling Michelin to extend its reach in the growing commercial retreading market. In 2005 Michelin announced a major expansion of its tread manufacturing facility in Covington, Ga. and, earlier this month, the opening of a new manufacturing facility in Mexico.”

31st July 2007/by Tyrepress Editors

Tyre Manufacturer Leads Chase for National Tyres

A ‘big manufacturer’ has teamed up with Robson Asset Management (RAM), a private equity company established by former Royal Bank of Scotland finance chief Jeremy Robson, to bid for National Tyres and Autocare. According to the The Times, RAM is leading in the £100 million auction. However, Reuters has reported that there was interest in the auction from Phoenix Equity Partners-backed Nationwide Autos, PAI Partners-controlled Kwik-Fit and Graphite Capital-supported Micheldever Tyre Services.

Tyre manufacturer Bridgestone narrowly missed out on a bid to purchase Kwik-Fit two years ago. Bridgestone representatives continue to be silent on the deal, explaining that their policy is not to comment on speculation. However, Michelin already owns the UK’s largest tyre retail equity, Goodyear Dunlop has put all its efforts into developing its HiQ franchise and Continental is unlikely to about face and re-buy the company it sold as a loss-making business in 2002 – leaving only Bridgestone as a likely contender.

Earlier reports had suggested that Nationwide Autos had already made a bid for National. When news of the National sale broke earlier in July, Micheldever executives flatly denied they were bidding for the company. Kwik-Fit representatives refused to comment in relation to the auction.

30th July 2007/by Tyrepress Editors

Michelin to Run Air Fill Up Roadshow

Michelin’s European ‘Fill up with Air’ campaign is coming to nine UK locations, the NTDA has reported. The roadshow will enable motorists to have their tyres checked and the pressure adjusted for free. DfT statistics show that 6 per cent of all fatal motorway accidents in the UK are caused by under-inflated tyres. In addition, driving with your tyres under inflated by as little as 8psi causes a three per cent increase in fuel consumption. If everyone pumped their tyres up to the correct pressure, UK motorists would save an estimated £1 billion a year in fuel costs.

Michelin’s ‘Fill Up With Air’ roadshow has been running in Europe for a number of years and offers drivers the opportunity to have a free tyre health check conducted by technical experts from Michelin. The roadshow will take place in the following locations:

Ashford 25/26 July
London 31 July/1 August
Banbury 2/3 August
Liverpool 7/8 August
Manchester 9/10 August
Hull 14/15 August
Stafford 16/17 August
Edinburgh 21/22 August
Oxford 28/29 August

30th July 2007/by Tyrepress Editors

OE Brand Has A Strong Influence on Aftermarket Sales

The degree of individualisation that goes into commercial vehicles selling for six-figure sums is much higher than for passenger cars. In the world’s largest truck assembly plant, the Mercedes Benz facility in the German town of Wörth, more than 100,000 vehicles are manufactured during the course of a year, and not a single one has an identical twin. One component affected by the uniqueness of each vehicle is the tyre. When ordering a new truck the freight forwarder or fleet operator can select what tyre he would like to see fitted to his new acquisition. In the past such a choice formed an integral part of each purchase and led to the situation where Michelin held enormous quantities of shares in a number of truck manufacturers, in some cases to the extent that supply amounted to “single sourcing.”

In recent times this situation has become much less pronounced, and this shift was accompanied by Michelin declaring a change in strategy at the Commercial Vehicle IAA in 2004, indicating that they wished to shift their focus more towards the aftermarket business. Nevertheless, Michelin remains the undisputed market leader in Europe (see chart). Today, Peter Matzke (Continental’s global head of Original Equipment Truck Tires) estimates the proportion of consumers desiring a particular brand of tyre for a tractor unit or bus at somewhere between 10 and 20 per cent. This figure varies from one brand of truck to another and is also affected on whether the vehicle is intended for long distance, suburban or off the road use.

30th July 2007/by Tyrepress Editors

Analysts: Michelin H1 Results “Good”

Despite reporting first half operating profits below analysts’ estimates, (860 million euros, up 34 per cent instead of 910 million euros, up 41 per cent), Deutsche Bank has described Michelin’s first half financials as “good.” They see the difference as mostly attributable to adverse raw material price fluctuations between semesters and as a result are predicting a better than expected second half. Therefore the bank has left its full-year operating profit projections for the company at 1.72 billion euros, up 30 per cent, which equates to a high 10 per cent of sales.

Looking further ahead, the analysts pointed to the 19 per cent margin achieved by Michelin’s specialty tyres division, which was loss making four years ago. According to the analysts, this is a “good indication of what truck tyres can achieve in the future.”

30th July 2007/by Tyrepress Editors

Michelin Sets New Uniroyal Tiger Paw AWP II

(Akron/Tire Review) Michelin North America has introduced the Uniroyal Tiger Paw AWP II, which will come with a 70,000-mile limited treadwear warranty. The new tyre will be launched this autumn in 26 sizes (21 T- and five S-speed rated), and is designed for large, mid-size and compact sedans, and minivans.

MNA said the range of 13 through 16-inch sizes offered will provide coverage of 94 per cent of the broadline segment and 79 per cent of the touring tyre segment.

27th July 2007/by Tyrepress Editors

Half Year Michelin Results Show Growing Operating Margin

Michelin has announced generally positive results for the half year ending June 30, 2007, which the tyremaker believes were aided by supportive markets, especially the truck tyre sector in Europe, Asia and particularly South America.

Total sales were recorded as 8.4 billion euros, a 4.7 per cent increase on the first half of 2006. From this operating income was 797.7 million euros, up 64.4 per cent on last year and net income as of June 30 was 436.4 million euros, a very respectable 57.6 per cent increase from 2006. The company’s price/mix effect was maintained at +4.4 per cent, in part the result of a “favourable impact” of price increases implemented during the second half of last year. Combined with reduced selling, general and administrative expenses and good sales performance, this equalled for Michelin a strong operating margin growth (before non-recurring items) to 10.2 per cent and the aforementioned 436.4 million euro net income.

27th July 2007/by Tyrepress Editors

Analysts Expect 41 per cent 1H EBIT Increase

Financial analysts have predicted that Michelin will give details of a 41 per cent EBIT increase (to 910 million) when it publishes details of its first half reslts on 27 July. According to the Deutsche Bank analysis, this corresponds to 10.8 per cent of sales. Net debt is expected to be up by approximately 100 million euros compared with December.

“We expect a net profit of 465 million euros. Our estimates are respectively 6 and 7 per cent above consensus,” the analysts commented, adding: “The second half should show a further improvement, however, we expect the positive pricing effect to be less significant in the second half. This is why after a 41 per cent EBIT increase in H1, we expect only +17 per cent in the second half.” Michelin management is expected to point out that the high rate of profits growth cannot be extrapolated out to a full-year result.

24th July 2007/by Tyrepress Editors