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.
A Canadian union leader has said that expansion plans for a Michelin plant on Canada’s east coast expose “the company’s long-term strategy to rid itself of unionised plants.” Michelin is to expand its non-unionised factory in Bridgewater, Nova Scotia, with a provincial contribution of between $3 million and $8 million, a government source told the Canadian press. Dozens of jobs will be created according to reports.
(Akron/Tire Review) Rubber planters in Asia are tapping trees faster than ever, pushing down prices and helping a recovery in shares of tyre manufacturers Bridgestone Corp., Groupe Michelin and Goodyear Tire & Rubber Co. Rubber prices in Tokyo, the world’s biggest futures market for the material, have fallen 20 per cent since reaching a record on 12 June. Supply has risen after companies such as PT Astra Agro Lestari planted more rubber trees in Indonesia and Malaysia to keep up with Chinese consumption. Now, China is taking steps, such as last week’s interest rate increase, to slow its economy.
Brazilian Felipe Massa withstood the heat of the Turkish Grand Prix, capitalising on his first F1 pole position by taking the chequered flag. However, Massa’s Bridgestone-equipped Ferrari was upstaged by fierce fighting for second place between defending champion, Renault’s Fernando Alonso (Michelin), and Michael Schumacher in the closing stages of the race. Despite driving a consistent race, Honda’s Jenson Button finished fourth. The result puts Alonso 12 points clear at the top of the drivers’ championship.
Michelin has launched a range of power converters that change 12volt DC battery current into 240volt AC mains power for laptop computers, mobile phone chargers, power tools and televisions.
With more and more mobile staff spending time on the road and making even less frequent visits to the office, Michelin has determined that greater power capacity is required for portable machines. Whilst a laptop has its own battery power, this capacity is limited and only an AC power source will operate the computer in the car and recharge the battery.
(Akron/Tire Review) The Tread Rubber & Tire Repair Material Manufacturers Group is in the process of revising and updating its Industry Recommended Practices for Tire Retreading and Tire Repairing, and is actively soliciting input and comments from interested parties. TRMG said it has not openly sought outside input in the past. Those interested in reviewing and offering comment on the retreading/repair recommended practices document can receive a copy by e-mailing TRMG chairman Norm Ball at norm.ball@us.michelin.com.
Michelin recently launched the XMCL, a tyre designed for compact construction machinery such as backhoes, compact loaders, and telescopic handlers used in farming applications. According to the manufacturer, the XMCL offers two fundamental advantages over its predecessor (the XM27) it lasts up to 46 per cent longer, and its crown and sidewalls are up to 10 per cent more resistant to punctures. Among the features that make the new tyre tougher are deeper lugs, steel casing belts and protective sidewall ribs.
Michelin has named Jean-Philippe Weber as director of its motorcycle racing activities. Weber will replace Nicolas Goubert at the end of the 2006 MotoGP season. The appointment comes as MotoGP switches to 800cc machines for the 2007 World Championship. “I am happy, honoured and humble to take over from Nicolas,” says Weber, whose background is in chemical engineering. Goubert, who has been with Michelin since 1988 and has run its motorcycle racing activities since 1997, will continue at Michelin into a position to be announced shortly.
County Down-based Mulgrew Haulage Ltd has adopted a Michelin Four Lives tyre policy across its fleet of 70 tractor units, fitting a mixture of new and Remix tyres supplied by local independent tyre distributor A1 Tyres. The decision to fit Michelin ‘E’ segment regional tyres replaces an existing procurement policy with Pirelli and follows the successful performance of a number of trial tyres which demonstrated a lower cost per kilometre, according to Michelin.
Tony George, the owner of Indianapolis race track, has agreed to extend his deal with Formula 1. This means the US Grand Prix will return to the Indy course, despite the 2005 USGP tyre debacle. Some observers saw the race’s future as doubtful following the well-publicised failure of Michelin tyres at the 2005 race. However, according to itv.com, F1’s successful return in 2006, with attendance figures rising above 100,000, triggered renewed interest in America. The website also published speculation that Bernie Ecclestone is considering a second US race “possibly through the streets of Las Vegas.”
Deldo Autobanden (Belgium) has already pre-sold over 1 million winter tyres. The vast majority of these are made up of sales of the company’s Eurowin, Sunny and Wanli products, but between 60,000 and 70,000 premium winter tyres have also been pre-ordered. Deldo made the announcement alongside the news that it is publishing a new winter catalogue for the 2006/2007 season.
Following Tyres & Accessories’ pioneering publication of online tyre brand penetration rankings last year, T&A has again enlisted the assistance of Cambridge-based e-marketing specialists Envisional. The report exclusively published in this month’s magazine shows some marked changes in the relatively short time since the 2005 survey.
While Michelin remained top of the virtual pile in terms of quantity, Pirelli beat the French tyre giant in terms of the quality of references to the brand. Goodyear and Dunlop showed that the two brands’ marketing investments have paid off. They remained relatively flat in terms of prominence, but made sharp improvements in terms of sentiment. In this respect (see magazine for sentiment chart) Dunlop jumped from fifth to second place overall, while Goodyear rose from sixth to fourth. Continental took the largest hit of the premium manufacturers, falling from third to sixth on the sentiment index. Interestingly, Uniroyal achieved the lowest number of negative references overall.
Various media sources are reporting speculation about Michelin’s intentions towards Pirelli Tyre. The rumours come after Italy’s Finanza & Mercati reported that banker Gerardo Braggiotti was studying the possibility of such a tie-up between the two companies. However, French tyre group Michelin had no comment to make about the Italian newspaper reports, according to Reuters. A source close to the bank involved reportedly told Reuters the story was “completely without foundation.”
(Akron/Tire Review) Even as both sides continue to pick over the fine print of the United Steelworkers (USW) new three-year master contract with Michelin North America, Goodyear and the Steelworkers reportedly remain far apart in their contract talks.
Goodyear’s union workers continue on the job, working on a day-to-day basis off their now expired contract. The USW’s deal with MNA has been established as the “pattern contract” for ongoing talks with Goodyear and now stalled talks with Bridgestone/Firestone.
Since Michelin launched “Energy” tyres in 1992, the products have prevented production of 23 million tonnes of CO2 and saved 9.5 billion litres of fuel, according to the company. The impressive environmental statistics were explained in a presentation made by Michelin to delegates attending the International Business Day immediately before the opening of the British International Motor Show at the end of July. The figures also hark back to other impressive claims the manufacturer made earlier in the year, ruffling a few feathers as it went.
Staff at Michelin’s Dundee tyre production plant are reportedly concerned about the outcome of management negotiations over future production levels at the factory. The Baldovie factory currently produces six and a half million tyres a year and is scheduled to do so again in 2007. Production levels for 2008, however, are still being decided, with talks currently being held between officials at the Dundee plant and in Clermont-Ferrand, the Dundee Evening Telegraph added.
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