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.
Indonesia’s Gajah Tunggal is expected to achieve sales of IDR6.3 trillion (£337 million) in 2007, rising by approximately 17 per cent over the IDR5.4 trillion (£289 million) recorded in 2006. The anticipation of higher sales is based upon the increased level of orders from Michelin this year, 2.3 million units compared with 1.3 million in 2006.
Michelin’s long established heritage and iconic mascot has helped it become one of the most recognisable and best-loved brands on the UK market, a phenomenon highlighted by recent survey results released by the Superbrands Council. The French tyremaker was listed as the 38th most recognisable brand in the UK out of a finalists list of 500 companies. This high ranking placed Michelin above market leading companies such as Apple (41st place), McDonalds (45) and IBM (61). The next tyre manufacturer to appear on the list was Italy’s Pirelli, in 69th place.
Judging for the Superbrands scoreboard is carried out by a cross-section of experts and consumers, with a ‘short-list’ of almost 1,500 brand names coming in for scrutiny. A total of more than 3,000 people are surveyed by independent research agency YouGov in order to formulate the results, which reflect public opinion on factors such as quality, reliability and distinction.
Drawing on their success in gruelling events such as the Dakar Rally, Ewan McGregor, Charley Boorman and their team chose Michelin and BFGoodrich tyres to support their recently completed ‘Long Way Down’ adventure through Europe and Africa. Travelling from John O’Groats to Cape Town via Western Europe and East Africa, the epic journey took in everything from tarmac roads to deserts and supported the Unicef, CHAS and Riders for Health charities.
Michelin supplied its Anakee tyres for the BMW R1200GS Adventure motorcycles ridden by Ewan and Charley, and BFGoodrich All Terrain T/A tyres for the two Nissan Patrol support vehicles. The two men were impressed by the combination of wet and dry grip, mileage, handling and comfort, combined with some off-road ability offered by the Michelin Anakee, the same tyre they used in the US leg of their previous trip, the Long Way Round.
Michelin India has announced it will begin offering a truck tyre regrooving service which it claims will add about 20 per cent to a tyre’s total lifetime mileage. The regrooving will be performed through Michelin’s dealer network, and technicians will be given training in operating the handheld regrooving guns used in the process.
The regrooving process can potentially add up to 4mm of fresh grooves on a tyre and decrease fuel costs by as much as 10 per cent. “The company’s aim is to make our customers happy by helping them get maximum mileage from the tyres, more so because our products are at [the] high end in terms of price,” said Jason Cooper, Michelin India road staff manager.
In the course of the past years there has been but one important process that has dominated developments in the European pre-cured retreading market: suppliers from outside of Europe are finding it more and more feasible to claim a growing market share to themselves. According to figures made available to Tyres & Accessories, the share of pre-cured treads that have not been produced by Bandag, Marangoni/Ellerbrock, Kraiburg or Michelin was at 18 per cent in the year 2000. Five years later, in 2005, the “others” (see pie chart) had already gained 29 per cent of the European pre-cured retreading market. And there are market observers that predict within three to five years this group of companies will potentially supply up to 50 per cent of all pre-cured tread used in European retreading facilities. One of these observers is Joe Krimpenfort, who – as general manager of the material supplier Galgo Pre-Q Europe – sees his share of the European retreading market as being there for the taking.
(Akron/Tire Review – RFID Update) A new RFID system by Advanced ID and SkyeTek is being touted as a potential solution to counterfeit and grey market tyres.
SkyeTek’s UHF RFID reader modules used in Advanced ID readers can capture tyre tag identification data for authentication. The readers integrate with the company’s software to provide tyre performance data and other information to help manufacturers, distributors, and fleet operators manage tyre inventories.
“We think maybe one out of five tyres is counterfeit or came from the grey market, and is not manufactured to the standards of the world’s top manufacturers,” Advanced ID CEO Dan Finch. “It’s a big problem that the industry doesn’t talk about a lot, in part because it has traditionally required expensive identification and tracking solutions.”
(Akron/Tire Review – Halifax Chronicle Herald) A rule change introduced August 16 by the Canadian province of Nova Scotia will make a double-wide tyre produced by Michelin more attractive to local truckers.
Nova Scotia has increased the weight limit for axles equipped with the new-generation wide-based single tyres to 7,700 kilograms per axle from 6,000 kilograms per axle.
The tyres, called X-One and made by Michelin at its Waterville, Nova Scotia plant, are considerably wider than the older-style single tyres and have been specifically designed to replace dual tyres.
Transportation Minister Angus MacIsaac said the new rules make wide-based single tyres a more attractive option for truckers who want to cut operating costs and energy consumption.
Single wide-based tyres reduce rolling resistance, improve fuel economy and allow truckers to carry additional payload on roads that are capable of handling the increased weight, Michelin claims.
Peter Nelson, executive director of the Atlantic Provinces Trucking Association, welcomes the option. “Next-generation wide-based tyres are to be celebrated for their efficiency and safety,” said Nelson.
Two days of inspections conducted by Michelin in the Oxfordshire town of Banbury has highlighted the necessity for motorists to regularly check their vehicle’s tyres. More than half of the cars looked at by the Michelin team had at least one dangerously under-inflated tyre.
According to local newspaper the Banbury Guardian, 80.11 per cent of the 181 vehicles had under-inflated tyres, while the percentage of vehicles with tyres considered dangerously under-inflated was 54.70 per cent. Eight of the cars checked even had punctured tyres.
Michelin states that running on tyres inflated to 15psi below the recommended level lowers the speed at which a car will aquaplane on a wet surface by 10mph. Potential weaknesses in the tyre’s wall can also develop through the excessive build up of heat that results from under-inflation. And if this is not reason enough to check those tyres, the tyremaker adds that Over 70,000 miles, having the correct tyre pressure could save replacing two tyres.
ATS Euromaster has secured a contract with Lancaster City Council to supply Michelin tyres and provide related service to the council’s 160 vehicle fleet. The three-year deal includes tyres for a mixed bag of vehicles ranging in size from lawn mowers through to refuse and recycling collection trucks.
“The varied nature of our fleet means that a fully managed approach like this is key to delivering best value for money for the taxpayer,” commented Graham Powell, fleet manager for Lancaster City Council. “ATS Euromaster and Michelin are also committed to ensuring that tyre-related downtime is kept to an absolute minimum, and helping the Council to achieve additional cost savings by maximising the performance and life of every tyre on the fleet. Selecting a partner with the skills to support our wide-ranging fleet was also crucial, with ATS Euromaster technicians as proficient at servicing the tyres on some of our more unusual pieces of equipment as they are on regular cars and trucks.”
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.
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.
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.
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.”
(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.
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.
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