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.
Serbian tyre company, Tigar, has signed a contract for long-term co-operation with Michelin and the World Bank Belgrade, reports Tanjug News Agency.
Under the contract, Michelin aims to take over 50.6 per cent of Tigar by 2007. By 2010, the plan is for small shareholders to hold only 30 per cent of company shares whilst Michelin will own 70 per cent.
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.
Around 400 workers at Michelin’s Stoke-on-Trent Remix plant will start industrial action at the end of next week, the Financial Times has reported. The work force is to ban overtime, work to rule and withdraw co-operation. The new follows workers’ decision to reject a non-consolidated pay rise of £650, or around three per cent.
Kwik-Fit could be worth up to £1 billion if it were auctioned in the coming months, according to media reports. CVC Capital, which acquired the business from Ford in 2002, is thought to be ready to appoint financial advisers. The Financial Times reports that Citigroup, Deutsche Bank, Goldman Sachs, Merrill Lynch and Morgan Stanley are all vying for the mandate.
Deutsche Bank analysts are expecting the price of Michelin shares to increase by over 20 per cent from their current value of 53 euros per share to 65 euros. The estimate follows Michelin’s recent financial activities such as its investment in Poland, its Q4 results and its announcement that it is disposing of its wheel business. These signals “show the management commitment to turnaround this business unit,” wrote Deutsche Bank.
“In our view this shows a great consistency with the management strategy and reinforces our confidence in the capability of Michelin to reach their mid-cycle target of 10 per cent as early as 2006,” it estimated. This translates into 6.5 euros EPS.
However a risk lies in further strong increases in raw material prices which Deutsche Bank fears will not be able to be passed on to the customer.
Michelin North America’s BFGoodrich Tire division is planning to sponsor the new Wal-Mart FLW Kingfish Tour and Wal-Mart FLW Redfish Series, Tire Review has reported.
This is a short extract. Tyrepress and Tyres & Accessories subscribers can log in below to read the full article.
If you are not yet a Tyrepress or Tyres & Accessories subscriber, you can change that here.
Becoming a member has benefits such as:
Goodyear will be the official press sponsor of the 75th Geneva International Auto Show, when it runs from 3 to 13 March. The manufacturer will use the sponsorship opportunity to increase recognition of the new name for its fail-safe, RunOnFlat technology. Last year Michelin was responsible for sponsoring this area of the show. Goodyear joins the likes of Eurosport, Yahoo Cars, Peugeot and Mazda, in supporting the event.
Michelin is extending the X One Total Satisfaction Guarantee into 2005, US magazine e-trucker has reported. The guarantee will be available to X One tyre customers in the US that purchase at least four replacement assemblies. According to the report, the guarantee will cover the first 10 sets of X One tyres purchased. As part of its guarantee, Michelin will buy back X One casings and will cover 75 per cent of the cost of the wheels if the owner isn’t pleased with the tyre’s performance at the end of its original tread life. Michelin recently added a new production line at its Spartanburg, South Carolina, factory partly to increase its capacity to produce X One tyres.
Michelin is set to sell its wheel business to the German Mefro group. According to Michelin, the new owners will keep both manufacturing plants and their 1800 strong workforce intact. Mefro, a family-owned company, has an annual turnover of approximately 160 million euros and aspirations to become the “number one European wheel manufacturer.” Now in light of the recent purchase, the company sees itself as a significant competitor to European steel wheel producers Gianetti and Hayes Lemmerz.
Michelin’s sports-touring tyre, Pilot Road, has two new additions for fitment to big trail bikes.
110/80 R 19 59V front and 150/70 R 17 69V rear are designed for bikes including the Honda Varadero, Triumph Tiger, Suzuki V-Strom and BMW R1100, 1150GS and 1200GS models.
The combination of Pirelli’s new studs and Petter Solberg’s driving has brought Michelin’s Swedish rally winning streak to an end. Before this year, the French manufacturer’s run stretched all the way back to 1997. ”Despite the difficult conditions, our P Zero J1 tyres won the rally and the overwhelming majority of the stages,” said Pirelli tyre rally manager Fiore Brivio, speaking at the finish. The race winner was quick to thank the Italian tyre firm: ”There are so many people to thank, everyone from [co-driver] Phil Mills, to the guys who work on my car, to Pirelli who have built such an incredible tyre, and the supporters out on the stages who cheered us along. Thanks so much to all of you!”
Michelin has signed the lease for a 205 acre plot of land in the north eastern Polish town of Olszryn, with a view to expanding its presence there, according to the town’s mayor. “I have signed a lease agreement with [Michelin Poland CEO] Pierre Michallat, which is very beneficial for the French group, for nearly 100 hectares of land next to the already existing Michelin sites in our town,” said Jerzy Malkowski, mayor of Olsztyn.
While some newspapers reported analysts’ disappointment with Michelin’s weaker than expected fourth quarter sales, analysts from France, Morgan Stanley as well as Deutsche Bank do not see too much reason for concern. Although volumes were slightly negative, the positive effect of better product mix and prices has continued to be demonstrated from quarter to quarter. Obviously Michelin increased market share with winter tyres and truck tyres in the OE business. Analysts are also highlighting the fact that Michelin is to invest 500 million euros in its polish plant and is therefore ready for further expansion in Eastern Europe.
Global investment group, Investcorp, has decided to acquire American Tire Distributors Inc (ATD) from its majority shareholder, Charlesbank Capital Partners. According to the Tire Review report, no further details were released.
ATD is the largest independent tyre distributor in the US, with 70 distributions centres in 35 states. These service some 40,000 tyre dealer locations across the country.
The outcome of the first races of the 2005 Formula 1 series will depend on how well teams adapt to the new tyres regulations, Jacques Villeneuvre has said in an article on his web site. “I think at least the first four or five races will be very interesting. There will be more suspense during the grand prix and I can tell you that everything will depend on how the drivers and teams will manage the new tyre rule.”
“After some testing in Valencia and Barcelona we’re making good progress and starting to understand how the Michelin tyres and new aero are working,” he added.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.
