Michelin Is Determined To Become Number Two In Asia
At a shareholders’ meeting Michelin Chairman Edouard Michelin announced that the French tyre maker is determined to become number two in Asia before 2005.
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.
At a shareholders’ meeting Michelin Chairman Edouard Michelin announced that the French tyre maker is determined to become number two in Asia before 2005.
Michelin has introduced a new initiative in the UK, aimed at supplying a single source, total tyre life package for fleet customers. Called Encore, the new service introduces a retreading facility for Remix tyres and the possibility of retreading new tyres from competitors. The retreads will be branded Encore and will only be available for fleet customers and not on retail sale. Further details are available in November’s TYRES & ACCESSORIES. The company has made ‘substantial’ investments at Stoke-on-Trent, including a new, independent retreading facility, in an attempt to woo fleet business. Encore will only be available to those customers who buy Michelin tyres as new, as the whole aim of the scheme is to increase sales of new Michelin tyres. For fleet customers, product alone is no longer enough, as they are demanding more in the way of services and tyre management. Encore gives Michelin a greater measure of control and enables the company to offer a ‘new to scrap’ tyre management service.
In 1994 Michelin presented the prototype 445/45 R 19.5 XTA truck tyre. Bridgestone has just announced in Tokyo the introduction of such an ultra low ratio tyre under the name “GREATEC”. The tyre is available in sizes 495/45 R 22.5 for trucks and 435/45 R 22.5 for buses.
Evolution for sure, revolution not at all. That’s Michelin’s opinion regarding the B2B E-Commerce initiative of leading global tyre producers which was announced recently.
The six tyre manufacturers making up RubberNetwork.com have signed a memorandum of association; a further step in creating the global electronic purchasing marketplace for tyres and rubber, which is on track to be up and running by the year end. The six members are: Continental, Cooper, Goodyear, Michelin, Pirelli and Sumitomo Rubber industries. On the other hand, Bridgestone has left the project. Asked for the reason by NEUE REIFENZEITUNG magazine, Bridgestone Firestone Europe said that a closer examination indicated that the relationship between costs and savings was not as beneficial as was first expected.
Jaguar has announced a long term partnership with Michelin in which, from next season, all F1 cars in the Jaguar/Ford racing stable will be fitted with Michelin tyres.
Michelin has won a five-year contract to supply trailer tyres to Transamerica Trailer Leasing (TTL) across Europe. TTL is Europe’s second-largest trailer leasing company, operating more than 21,000 trailers. The company is based in Barking, in the UK and has offices across Europe. It is owned by a Dutch bank. Michelin tyres will be specified as exclusive OE fitment on new trailers, while Michelin new and Remix tyres are being fitted to the fleet. No details of the value of the contract have been revealed, but TTL currently spends more than US$5 million on tyres annually.
Michelin is worried that data on its tyres might be made available to Ferrari (Bridgestone) if the French company supplies the Alain Prost F1 team with tyres next season. Prost will be using Ferrari engines. As the new company on the block, Michelin is obliged to supply 60% of the grid. Bridgestone has signed with six teams, and says that it is not looking for more, which would appear to leave Michelin with little choice other than to supply Prost.
The Nissan factory in Barcelona is not working to capacity and is the obvious candidate for joint production work in similarly built Renault models, according to a statement at the Detroit Motor Show by Carlos Ghosn, ex-Michelin manager, now responsible for the integration of Nissan with Renault. Vehicle suppliers hope to profit from the new arrangements, as Ghosn announced a significant reduction in their numbers. For instance, Hayes Lemmerz supplies nearly all the aluminium wheels to Nissan Europe and is now making big strides with Renault as well.
At the beginning of April the sixth round-table conference about tyres and tyre technology organised by the Tip Top Stahlgruber company took place in Munich. This year’s 85 participants came from many varied backgrounds: There were tyre dealers, retreaders, material suppliers, representatives of associations (ADAC, BRV, DEKRA, TÜV etc.), scientists and representatives of the vehicle and tyre manufacturing industries. Some of the highlights of the event included Hans-Jürgen Drechsler, deputy managing director of the BRV (Association of Tyre Traders and Non-Industrial Vulcanisers), speaking about development tendencies in the tyre trade with plenty of figures to back up the claim that the general tendency to concentration in the tyre trade is accelerating and manufacturer dependence or orientation also on the increase. Dieter Hatzfeld, formerly Michelin, now in a leading position with RuLa GmbH, the truck tyre cold cure retreader, spoke about the lop-sided pricing policy in the truck tyre field. The gist of his talk was: The price relation between new and retreaded tyres is no longer right. The subject of Mobile Fitting was also under discussion. “Long-term participation in the truck tyre business means participation in the large fleet business and offering comprehensive service schemes”, Drechsler said. Norbert Schygulla (Deutsche Goodyear), Michael Zoeppritz (Bridgestone/Firestone), Dr. Bernd Löwenhaupt (Dunlop), Ludwig Nelke (Michelin) and Hugo Verschoore (Butler Engineering) then introduced their own companies’ tyre run-flat systems (EMT, DSST, PAX) complete with practical fitting and maintenance suggestions. All in all, the range of subjects was far-reaching, offering something interesting for each of the guests present. Read more in NEUE REIFENZEITUNG 5/2000.
The Michelin Group has officially opened a new agricultural service centre in Germany, handling the Michelin, Kléber, Taurus and Stomil brands. In Germany, the group controls more than one third of the agricultural tyre market.
For companies such as Michelin, motorsport plays a very important role in the development of the tyres eventually sold to the public – even if they are very different from those used on the track. Involvement in motorsport has two obvious benefits; publicity and proving technological superiority. There are other benefits though; it offers an extreme training ground for skilled engineers, developing team skills and experience at the limits of tyre technology, and knowledge which cannot be gained elsewhere. Products developed for the race track will never find their way directly on to road-going vehicles. However, many elements of motorsport tyres have found their way into commercial tyre products – compounds, Kevlar and Aramid fibres – whilst rally events supply information about tread design, puncture resistance, rubber hardness and thermal resistance. Motorsport also offers a test bed for simulation procedures. Development is tried out on the virtual test bed and trial tested in the most extreme conditions imaginable. From a tyre manufacturer’s point of view motorsport is about getting a set of tyres to complete the race and cross the line in first place – the rest of the car is only a means to that end. The tyre must be designed to last for the duration of the race. It therefore can and will have a completely different set of design criteria from a road tyre, which has to undergo 25,000 miles and more of driver abuse, function in many weather and road conditions, and give warning when approaching their limits. The race tyre is designed to carry out a single race at maximum power for the duration of its working life. Read more about this topic in the December issues of NEUE REIFENZEITUNG or TYRES & ACCESSORIES.
Following a recent feasibility study, Michelin has announced that Bangalore is the most likely site for a new manufacturing plant, as various producers have factories in this region. Other cities being considered are Pune and Baroda.
Six of the largest tyre manufacturers have announced their intention to develop a global e-business purchasing company. Rubbernetwork.com is an independent company which will host a global exchange, including Conti, Cooper, Goodyear, Michelin, Pirelli and Sumitomo Rubber. Confidentiality is assured and the exchange will be open to all manufacturers and suppliers. It will be operating by the year end. ‘Significant’ savings and efficiencies in purchasing are predicted.
In an attempt to quicken the recall of tyres, Bridgestone/Firestone is to airlift tyres from its Japanese plants to the USA. At least one flight a day is anticipated. Ford has announced that it is to stop production of the Ford Explorer at its St. Louis factory and of the Ford Ranger at two New Jersey plants for two weeks. The Ranger is fitted with the same size tyres as those fitted on the Explorer and being recalled by Bridgestone/Firestone. The move will free up 70,000 tyres for replacement and it is estimated that the cost to Ford in lost production will be over $100 m in after-tax profits. Ford is also understood to have increased orders of tyres other than Firestone to speed up replacement of tyres for the Explorer. Goodyear says it has increased production fivefold and production at Michelin’s US factories has tripled.
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