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) Groupe Michelin launched a new service product in China called Sui Ni Xing or “Drive Without Worry,” according to China Daily. The product, which includes services such as 24-hour roadside assistance, free tyre repair, towing and warranty programs, will be available in China within the next two years.
Formula One world champion Fernando Alonso says his expected battle with Michael Schumacher this year’s title is likely to come down to a battle of the tyres. Alonso’s team (Renault), Honda and McLaren are all Michelin-shod teams, while their Bridgestone supply rivals Toyota, Williams and Ferrari. But it is Ferrari that have Alonso worried. “Ferrari’s success will depend on their tyres. We saw that in Bahrain. The Bridgestone worked very well – Schumacher was fighting for victory and Williams did the fastest lap of the race,” said Alonso.
Michelin’s budget for raw material costs is expected to increase by 11 per cent year-on-year in 2006. However, Deutsche Bank analysts report that natural rubber is up 15 per cent so far this year. “Natural rubber (RSS3) represents 25 per cent of raw material (24 per cent of sales or 4 billion euros), therefore should the natural rubber stay at these levels this would imply a discrepancy of around. 75 million euros on budgeted margins,” the analysts explained.
The new Dunlop Sportmax Qualifier scored another significant victory in its second major international comparative tyre test; this time by German magazine PS.
The test confirmed the result published last month carried out by US magazine, Sport Rider, which compared the top road tyres on the market. The Dunlop Sportmax Qualifier was pitched against the latest offerings from Michelin, Pirelli, Bridgestone, Avon, Metzeler and Continental in a gruelling assessment of traction, braking, steering response and general handling qualities.
Michelin has increased its financial stake in Hankook, purchasing an additional two million shares – equivalent to 1.3 per cent of the Korean manufacturer’s share capital – for US$26 million.
Michelin is reporting that Anglian Water’s decision to switch its tyre procurement policy to Michelin from another mainstream manufacturer has resulted in measurable cost savings of nearly 16 per cent per year and halved the number of tyre related breakdowns.
The company operates a fleet of 49 waste tankers and tippers, comprising a mixture of Volvos and Scanias, which are responsible for moving solid product from sewage works directly to treatment plants across the East of England, stretching from the Humber to the Thames.
Sin Hup Huat Company (SHH Co.). has signed a memorandum of understanding with Nankang Rubber Tyres Corporation Taiwan, for SHH Co to exclusively market and sell Nankang’s full range of tyres for Brunei.
The tyre distribution deal will be supported by further contracts that SHH managing director Steven Kuan signed with Brunei’s Hyundai dealer Setia Motors Sdn. Bhd. This makes SHH Co. the preferred service provider for tyres, wheel services and roadside assistance for Setia Motors Sdn. Bhd. SHH simultaneously sealed a deal with 24/7 Roadside Assist, represented by its managing director Mark Adams. 24/7 Roadside Assist will join forces with SHH Co. as its official affiliate service partner and retail outlet for roadside assistance service and preferred workshop.
Vaughan Freeman, a motoring writer for leading national newspaper The Times, has published an article promoting the use of cold weather tyres. Under the title “Tests Show Winter Tyres Can Cut Braking Distances”, the article explained all the important features about the introduction of cold weather tyres in the UK.
SpeedTV.com has reported that McLaren boss, Ron Dennis, has hinted that Michelin’s announced withdrawal from F1 might not be definitive. Dennis said that the French company might change its position and continue into 2007 for what is supposed to be the last season of tyre competition. “Bridgestone has opened discussions with the teams and us as well. But I think there’s also some indication that it may change. We are not at this stage focusing on next year’s tyre supply. At the moment we’re very comfortable that Michelin have done a very good job.
“Of course we’re looking at two Ferraris on the front row on Bridgestone, and it’s a little confusing to see the pace of the other teams on Bridgestone, so we don’t know where we are. But I think Michelin has done a very good job, and we’d love them to continue, and I don’t think that is beyond the realms of possibility,” Dennis is reported to have said.
Concern amongst Goodyear Dunlop Germany employees is growing as rumours abound about the future direction of the company. Talk of the possible consequences is said to be weighing down on employees, resulting in a difficult working atmosphere.
The word is that Goodyear is planning to change its organisational structure in Germany at some point in the near future. The reorganisation is expected to bring the legally independent Goodyear, Fulda, Dunlop, M-Plus (associated brands) and GDHS (trade) businesses together under one roof, in a similar way to Continental’s profit centre model. If and when this happens, it is not only the managing directors who stand to lose some of their influence. There are also question marks over jobs in Hanau, Fulda and Cologne. The company’s car dealership and truck tyre businesses are already run on an integrated basis.
Goodyear has warned motorists to consider the ‘whole life’ performance of tyres to ensure they are getting the optimum safety and performance in all weather conditions throughout the life of their tyres. The manufacturer says that the difference in tyre performance when worn is even greater than when new and is lobbying for more independent testing on tyres at various stages of their lives. The timing of Goodyear’s announcement follows claims from Michelin that TUV tests found its new Primacy HP tyres perform 25 per cent better when worn than any other premium product.
In an independent test of new tyres, Goodyear reports that its HydraGrip outperformed Michelin’s Pilot Primacy and Pirelli’s P6 in a 50mph wet emergency stop test. According to the manufacturer the independent test found that the Hydragrip-equipped car came to a standstill three metres earlier than its competitors. The tyre is said to have outperformed the Bridgestone Turanza by as much as 10 metres.
The Michelin Euro Assist service has enhanced its offer to commercial vehicle operators with a pledge to either get to the scene of the tyre-related breakdown in Europe in less than two hours, or reimburse the 70 euro service charge. This applies even if the repair technician arrives just one minute late.
Michelin Euro Assist handles nearly 20,000 tyre-related commercial vehicle breakdowns a year across Europe. The support of its 3,200 tyre-repair specialists means the average vehicle off-road time was just two hours and six minutes in 2005. A satisfaction survey conducted last year also revealed that 90 per cent of Michelin Euro Assist customers would recommend the service to other haulage companies.
During January and February of 2006 JSC “Nizhnekamskshina” says it produced 100,000 less tyres than planned. According to the company, the basic reason for the disruption was the high rubber price. The beginning of March has not proved to be much better for Russia’s largest domestic tyre producer. In Nizhnekamskshina’s words the situation “remains complex” due to short supplies of natural rubber.
(Akron/Tire Review) Michelin North America’s (MNA) Ardmore, Oklahoma, passenger and light truck/SUV tyre plant and its American Synthetic Rubber Company (ASRC) in Louisville, Kentucky, qualified for participation in the EPA’s National Environmental Performance Track programme.
Last week Continental shares reached a new high of 86.51 euros while the competitors Toyo (-7%), Yokohama (-6%) and Nokian (-5%) lost ground. Michelin, by comparison, has remained stable at around 50 euros. Goodyear started a downswing at the end of February from more than 15 euros to 11 euros and is in danger of falling below 10 euros in the near future.
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