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.
(Akron/Tire Review) There is one P225/50R17 Michelin Pilot HX MXM4 that will never see the open road – the 200 millionth tyre produced at Michelin North America’s (MNA) Greenville, S.C., US1 plant last week. And Richard Simmons, the man who helped build the plant’s very first tyre – a BR78R13 – in 1975, was on hand to help produce that landmark radial. According to MNA, some 100 employees at the plant have been at US1 since day one.
(Akron/Tire Review) The United Steelworkers (USW) stated goal of protecting job security will certainly be challenged as formal negotiations begin next month for new master contracts between the Steelworkers and Goodyear, Bridgestone/Firestone and Michelin. The talks will begin against a backdrop of ever-increasing raw material, benefit and legacy costs that have forced global outsourcing of production in order to maintain profitability.
(Akron/Tire Review) AFX reports out of London say that Standard & Poor’s Ratings Services has placed its BBB+ long-term corporate credit rating on Groupe Michelin, citing concerns over the tyremaker’s profitability. S&P affirmed, however, Michelin’s short-term rating at A-2.
Michael Schumacher Bridgestone-shod Ferrari has won the European GP in front of home crowds to give Bridgestone its 97th win since entering Formula One in 1997. The result was Schumacher’s 86th win of his career. After a race-long battle, Schumacher beat the Michelin equipped Renault of Fernando Alonso into second place. Ferrari and Bridgestone’s Felipe Massa completed the podium.
(Akron/Tire Review) Michelin North America (NA) has launched the Michelin Latitude Tour HP, an all-season premium touring line targeting luxury cross-over vehicles and SUVs that the company said can cut driver fuel costs. The Latitude Tour HP features a dual tread compound, MNA said, for enhanced wet and dry traction; “load-sensitive contact patch technology” to help maintain “the widest possible footprint” at all times; “Secure Lock technology” for control and grip in wet and snowy conditions; dual sidewall plies and an aramid nylon belt for durability.
David Price Food Services Ltd is enjoying an average 27.8 per cent increase in mileage performance from each of the Michelin drive axle tyres on its fleet of 26 commercial vehicles by regrooving them in-line with Michelin’s recommendations. According to the manufacturer, the company fits new Michelin 295/80 R22.5 XZE 2+ and XDE2+ tyres as standard across its fleet, with each tyre regrooved by the local ATS Euromaster branch when the tread depth reaches two to three millimetres.
Since BFGoodrich took over supplying some WRC teams, the brand has been showing its high-performance colours. Now managers are offering independent dealers some great opportunities to taste the hi-octane lifestyle.
Like other influential companies Michelin group brand BFGoodrich has felt the effect of a downturn in general passenger car replacement market. However, though sales volumes dropped in the first half of 2005, associate brand manager Dominic Clark reports that this was compensated for in the second half -against the market trend. While some sources put the total market downturn between 11 and 13 per cent, BFGoodrich only experienced an 8 per cent drop in the first half of 2005. In the second half sales compensated for the first half results and the company ended the year only 1.2 per cent down on 2004.
The ERMC-compiled Europool figures report that the total UK passenger car tyre market amounted to 16,111,696 units in 2005 (down 1.9 per cent on 2004). This compares with a slightly larger drop in the Europe-wide total of 117,242,516 (down 2.9 per cent on 2004). However, due to the way these numbers are compiled (excluding tyres that are not produced within reporting countries) they are perhaps overly optimistic. As industry insiders will be aware, the total market is actually more than 10 per cent larger and has fallen significantly more than one to two per cent in recent years. New figures compiled by market research company GfK put the total market at 18.49 million units, down 13 per cent over 2004 in terms of volume (21.33 million in 2004 and 22.58 million in 2003).
At the NTDA 2006 TAFF Awards Dinner at the Hilton Hotel, NEC Birmingham earlier this week, the coveted TAFF trophies were presented by Mark Lovett of Renault UK Vans, the Awards sponsors. Announcing the winners, Martin Rowlands, Immediate Past Chairman of the NTDA, said that this year the Awards had attracted phenomenal support, with over 5000 votes being cast.
The winners were:-
Tyre Manufacturer of the Year 2006 – Michelin Tyre plc
National Wholesaler of the Year 2006 – B I T S
Regional Wholesaler of the Year 2006 – North Eastern Tyre & Exhausts Ltd
Product Innovation Award 2006 – Goodyear RunOnFlat
Tyre & Aftermarket Equipment Supplier of the Year 2006 – Rema Tip Top UK Ltd
Environment Award 2006 – C-Tyres Ltd
Industry Advertising Award 2006 (in association with Tyres & Accessories) – Goodyear RunOnFlat
Beginning this year, Bibendum the Michelin Man will once again serve as Michelin’s spokesman in the UK and Europe. Still funny and playful at 108, he is returning to centre stage in Michelin’s advertising — after several years’ absence — in a multi-media European campaign which started in late January 2006 and extending throughout the year. In the UK, the Michelin Man will be featured on radio, in magazines and newspapers, and on the Internet and in sales outlets.
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Following Michelin’s decision to close its BFGoodrich plant in Kitchener, Ontario, the United Steelworkers has closed its offices in Nova Scotia, says the Halifax Chronicle Herald. The union has been trying to form a union at Michelin’s three Nova Scotia plants for some time; indeed, during Michelin’s 36-year history in Nova Scotia, a dozen or more attempts at unionisation have failed. The USW says that efforts will continue but will now be centralised from the offices at Moncton, New Brunswick.
Michelin announced an increase in first quarter sales of just over 10 per cent; easily surpassing the estimates of industry analysts, who had predicted a 6.7 per cent rise. The outlook, however, remains cautious and Michelin has increased its allowance for raw material costs by 170 million euros, from 360 million euros to 540 million).
For 70 years, the Pneuservice Group has operated as a leader in tyre distribution. As one of the largest import/export distributors in Italy, Pneuservice deals with everything from scooter to passenger car, truck, and earthmover tyres, trading more than two million tyres per year. The group’s offices, depots, and more than 230 franchises are spread throughout Italy and are renowned for fast, efficient and courteous service.
Industry analysts have forecasted first quarter sales figures for Michelin of around 3.85 billion euros ($4.75 billion) – a rise of 6.7 per cent. The figure is the average of estimates from 11 analysts, which ranged from 3.7 billion euros to 4.2 billion. Michelin’s actual first quarter financial results will be revealed after the close of the stock market today.
The size of today’s Russian truck tyre market is about 12 million units per year. Together with improving road infrastructure – in particular in urban areas – and the increasing importance of Western products and technology, the retreading industry too is moving ahead in Russia. It is not only the demand for retreaded truck tyres, which is growing, but also the demand for truck tyres that were retreaded in Russia and other former Soviet states. But one problem remains: in general casings have to be imported because Russian-made truck tyres are not good enough quality to be retreaded, say most market experts.
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