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.
Speculation that the Goodyear Tire & Rubber Co will enter the Russian tyre market with a big investment is starting to become more concrete. Reports by a Russian analyst explain that the American tyre giant has shown the “most interest” on the subject of a partial takeover of joint-stock company, Nizhnekamskshina.
The United Steelworkers of America union (USWA) has announced that it has begun conducting strike preparation meetings with employees at Bridgestone/Firestone North American Tire (BFNAT) plants, according to Tire Review.
Groupe Michelin’s Michelin Lifestyle division has introduced what it claims are the first wheel and tyre care products on the market to be developed for and approved by a major tyre manufacturer. Michelin says it will make these products available to select retailers to sell to consumers.
Groupe Michelin has announced that it will increase earthmover tyre production capacity in both its Lexington, South Carolina, and Vitoria, Spain, plants. The capacity boost results from “unprecedented growth of the surface mining industry worldwide,” according to Michelin. The expansion plans complete production enhancements started by the manufacturer in 2003 and 2004.
During last week’s Geneva Motor show Michelin is reported to have said that the situation surrounding raw materials is “very worrying” and rising prices will continue to place severe pressure on the company during 2005.
“This year, the environment for raw materials remains tense, which is causing strong pressure on prices, and as a consequence on our costs,” said research and development director Didier Miraton in Geneva.
“There is no situation of us having a shortage but the tension is very worrying,” he added.
Michelin has decided to raise prices by an average of five per cent in Europe until July 2005 to offset increased raw material costs. Miraton said he expected the situation to continue as mobility needs in Asia would drive demand, stressing that there was “a need to find ways to make better use of raw materials”.
Michelin supplied teams took all but one of the top eight places at Sunday’s Australian Grand Prix. The opening race of the season saw Giancarlo Fisichella’s Renault win at the chequered flag, followed by Rubens Barichello’s Bridgestone equipped Ferrari. Fisichella’s teammate, Fernando Alonso took the final podium position. In a further development, the Red Bull team’s drivers (David Coulthard and Christian Klein) took fourth and seventh place respectively.
During the official press conference that followed the race, racewinner Giancarlo Fisichella told journalists: “Honestly because of the first part of the race I was a bit conservative on the tyres. I never pushed to the limit, only at the end when Rubens was catching me.”
“It’s going to be a lot closer this year, but I do feel we’re going to be in with a shout all year,” Renault’s technical boss Pat Symonds also commented.
Hayes Lemmerz International, Inc. has appointed Pieter Klinkers to the position of vice president of sales and marketing for the company’s International Wheel Group. Mr Klinkers replaces Marc Hendrickx who was recently appointed as vice president of the International Wheel Group’s Aluminum Operations. Mr Klinkers will report directly to president Fred Bentley. The appointment became effective on 1 March, 2005.
Pieter Klinkers joins Hayes Lemmerz from Michelin’s Wheel Group where he has worked since 1997. Mr Klinkers has served in a series of senior level marketing and sales positions with Michelin, most recently as director of sales and marketing, based in Paris, France. Fluent in Dutch, English, German and French, Mr Klinkers holds a Masters degree in Business Administration from Maastricht University in the Netherlands.
The Rubber Manufacturers Association (RMA) has reported that 11 CEOs from tyre companies in Europe, Japan, South Korea and North America met in Geneva during the Geneva Motor Show to discuss common global policy issues faced by the industry. According to news published by Tire Review, the CEOs discussed environmental and health and safety matters, and reached a consensus on two major issues.
The companies agreed to address industry policy issues of tyre materials and tyre wear particles. As part of that, they agreed to initiate independent research on these issues by establishing two project teams that will report back to the group. Participating in the discussions were the chief executives of Bridgestone Corp., Continental AG, Cooper Tire & Rubber Co., Goodyear Tire & Rubber Co., Hankook Tire Co., Kumho Tire Co., Groupe Michelin, Pirelli & Cie SpA, Sumitomo Rubber Industries Ltd., Toyo Tire & Rubber Co., and Yokohama Rubber Co.
The meeting was attended by representatives of the European Association of the Rubber Industry – BLIC, the Japanese Automotive Tire Manufacturers Association, the Korea Tire Manufacturers Association and the Rubber Manufacturers Association.
Michelin has confirmed that it will be injecting a multi-million pound investment package into its UK service chain ATS Euromaster this year, so that it can continue to develop its added value customer focus started in 2004. According to the company this 10-year programme is part of a wider investment schedule that will be introduced and rolled out throughout the coming years.
Michelin will not buy the whole Trenco Egyptian conglomerate, as some new sources had reported. According to an article in French newspaper, Les Echos, Michelin was likely to buy the conglomerate for $10 million, despite its daily losses of $40,000 and debts of $200 million. Deutsche Bank analysts contacted Michelin and report that the company denied being interested in the whole conglomerate, but only in the Nisr tyre brand. Nisr is much smaller in comparison, producing only 30,000 tyres each year. Egypt is the 5th largest North African market with an annual volume of 3 million passenger tyres and 700,000 truck tyres. This is an attractive market for Michelin which aims to expand its production capacity in this region, the analysts believe.
The Transport & General Workers Union (T&G) has agreed hold off on planned industrial action for seven days. Union members at Michelin’s Stoke-on-Trent plant had agreed to work to rule, but the decision was suspended following a “positive” meeting with management. If no agreement on the pay offer can be reached, the industrial action will go ahead on 11 March, the Birmingham Post reported. A planned demonstration will also be postponed, the newspaper added.
Continental AG has retreated from its memorandum of understanding with China’s Qingdao Doublestar, Bloomberg has reported. A Continental spokesperson told Tyres & Accessories that the decision was made recently when the company realised it would not be able to gain a majority share in the Chinese joint venture. Because the decision was taken at this early stage, no money has been lost, the representative said.
TIA has named the participants in the first Commercial Tire Executive Summit, which will be held April 20 during the forthcoming World Tire Expo at the Kentucky International Convention Center in Lousiville. Tire Review has reported that the summit, entitled “The Commercial Truck Tire Industry: Here and Now,” will include “an energetic discussion of current issues and how they are impacting the commercial tyre industry right now,” according to TIA.
Michelin managing partners Edouard Michelin and René Zingraff will propose that Mr Michel Rollier takes up the position of managing partner, according to a company statement. The existing managing partners will formally make the proposal when the company has its annual general meeting on 20 May.
Workers at Michelin’s Stoke-on-Trent Remix plant have voted to take industrial action after a dispute over pay conditions. Members of the Transport and General Workers Union (T&G) at the factory supported strike action by almost three to one and industrial action short of strikes by just over four to one. 81 per cent of the T&G members took part in the vote.
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