O.E. Aims of Michelin
Michelin wants to capture half of the global O.E. market for high performance tyres. To help achieve this the company is counting on its C3M automated manufacturing system, now in place at seven plants around the world.
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.
Tag Archive for: Michelin
The Retreading Of Truck Tyres
Product NewsWhereas the incidence of car tyre retreading is slowly diminishing (in summer tyres this segment is virtually insignificant, in winter tyres market shares are falling dramatically and are approaching the ten percent mark), truck tyre retreading seems to be stable across Europe. But there are significant national differences especially regarding the incidence of retreading and the relationship between new tyres and retreads. Looking back over the last decade, not from the technological viewpoint but at the main players and their market shares, it was (before Michelin’s Recamic came on the scene) the Marangoni group (including Ellerbrock), which showed most growth. Kraiburg also showed positive development but the world’s no 1 in cold retreading Bandag showed signs of stagnation. If these three players have improved, strengthened or defended their market shares then there must also be losers, these being the new tyre producers who supplied the retreaders with materials for their business but especially the hot retreading. The four big players in the European truck tyre market (Michelin, Goodyear, Bridgestone, Continental) have tied up packages which should be regarded by the retreading specialists (like Bandag, Marangoni/Ellerbrock, Kraiburg) with some discomfort because the result is a lessening of their influence. New tyre manufacturers, retreaders and dealers find themselves as part of a package. The importance of retreaded truck tyres grows, while the importance of retreaders shrinks. The retreaded truck tyre is an integrated part of a very complex marketing concept. The retread is another item in a customer relation program, a marketing instrument, which is designed to lead to the sale of the next new tyre.
Racing fever in Germany now – Michelin Goes Formula One
Product NewsMembers of the German buying association of free tyre dealers “EFR” met for their annual meeting at the former Expo exhibition centre. Doors were closed when they reviewed the past year and analysed the weak points, as well as when they tried to set the agenda for the year 2001. No doubt EFR is known on the market as a “Michelin buying association”, which, regarded from the opposite side, is as wrong as if FRI were to be called a “Goodyear buying association”. But this is the wrong place to discuss both sides’ differences. In fact, EFR is representing a group with a very friendly relationship towards Michelin and therefore selling their products as a priority. And of course Michelin itself is doing everything to satisfy the EFR dealers’ demands, as with more than 300 specialised tyre dealers they form a solid distribution basis for their products. After being in low gear for several years, Michelin has had a brilliant start to the new millennium, while profiting from the seeds they have been sowing for the past two or three years. However, until recently, with their first brand the French have steadily been losing market shares all over Europe and most of all in Germany – although no loss of quantity and admittedly from a high ranking – now they are ready for the battle with the competition in their home market Europe, more than ever. As Michelin wants to win the race, Patrice Kéfalas could not miss a favourable opportunity: “Michelin goes Formula One” was the message that he announced in front of the EFR tyre dealers. Hence, the race is on at all levels. With Michelin tyres Patrice Kéfalas does not only want to win for merely for the sake of being the winner, he also wants to realise an image profit, which should end up in either greater quantities or better selling prices too between industry and trade or trade and consumer, or even both.
Expansion Of Production For Goodyear, Michelin
Product NewsIn the wake of the Firestone recall, Michelin says it has tripled tyre production in the USA as well as shipping thousands of tyres from Europe. A special customer service centre is handling 8,000 calls a day. Goodyear plans to provide “more than half” of the tyres replaced because of the recall and has increased production of Ford-approved tyres tenfold. The company has increased shipments to 9,000 outlets, including company-owned stores, independent tyre retailers and Ford dealers.
“Innovation And High Performance” From Michelin
Product NewsThe Michelin stand at Frankfurt, the new technological development partner for Bosch presents developments which will particularly enhance the cars of today and tomorrow. As a wood, metal and glass structure, the booth aims to highlight the high technology of the exhibited products, whilst being user friendly for visitors. Innovation (PAX, Chassis Systems, concept tyres) and high performance (tyre product families) are the two messages transmitted through this architecture. In addition, visitors have the opportunity to test the PAX system on two Renault Scénics in the outer area of the fairground.
Winter-Workshop 2000 With Michelin
Product NewsAt the end of November Michelin invited motor journalists to a so-called “Winter Workshop” at the “Arctic Driving Centre” near Rovaniemi (Finland). The main topic of the event was of course the capabilities of winter tyres. Despite the very mild climate at the end of last year the tyre industry expects that with 18.4 million winter tyres, sales will reach a new record this season in Germany: Based on this Michelin says that customers will spend some three million DM for new tyres and service. As well as such basic market data, the Winter Workshop gave those present the chance to check out the advantages of modern winter tyres. To illustrate this the tyre manufacturer had prepared four different sections, focusing on influences on winter performance such as the tread depth, the age of the tyre and the tyre speed index and dimension. All in all, 24 combinations were tested and more than 50 journalists driving the test cars led to a great number of – sometimes astonishing – results, and the data allowed the establishment of average values for each section. Michelin says that the results of the workshop will have a bearing on future developments and the criteria for choosing the right tyre. Learn more about this in the January edition of NEUE REIFENZEITUNG.
RubberNetwork Moves Forward
Product NewsRubberNetwork.com, the electronic global purchasing marketplace set up by six tyre manufacturers, has taken a step forward. Transactions are due to begin in April and Bob Webster has been appointed as vice president of operations. A chief executive officer will be appointed at a later date. The organisation has also launched its own website.
The Truck Tyre Business
Product NewsThat the heavy truck tyre business is changing dramatically at all levels cannot be denied. Tyre dealers doing this business almost as a sideline in their local markets are facing a decrease but they are not too sad about this development because it is becoming harder and harder to earn money with truck tyres. This sector of business is decreasing because, for hauliers and their fleets, an enormous process of consolidation is taking place. In the future we will have tyre dealers saying good-bye to the truck tyre business and tyre dealers being strong in car and truck tyres. The media predict that goods traffic will increase significantly in coming years. Tranportation by waterway, railroad and especially road haulage will grow. But that might be a scenario for the longer term, because now we can read predictions of lower new truck registrations of about ten percent this year, and also next, in most European countries. But the stock lists seem to be stable because hauliers use their trucks longer (although they would prefer to buy a new one but it is too expensive) and modern trucks have a greater life expectancy than previously. The truck market is undergoing a process of structural changes. Mega fleets have arisen, absorbing a lot of the medium-sized and small hauliers. For the big fleets the four premium tyre brands Michelin, Continental, Bridgestone and Goodyear dominate. Their second brands are cheaper but good quality nevertheless. At the budget tyre level, brands like Toyo, Hankook or Marshal compete with the third brands of the four big market players for 15 percent of the market.
New Distribution Warehouse For Michelin
Product NewsMichelin is to invest 12m Euro in a new tyre warehouse at its Alava plant in Spain. The 30,000 square metre warehouse will employ 40 staff and will be for the exclusive distribution of the production from the Alava factory. The warehouse should be operational in 2002.
Cost-Cutting Proposals Rejected By Michelin Workers?
Product NewsA report in the local paper, the Burnley Express, quoting an anonymous worker, says that workers at the Michelin tyre plant in the town have rejected cost-cutting proposals put forward by management. These proposals are said to include a 25 per cent reduction in shift allowance and some workers moving from a four day week to three days. However, a union spokesman said that proposals have been neither accepted nor rejected and unions and management will meet on 29 January to discuss the situation. Around 450 workers would be affected at Burnley, where truck and bus tyres are made.
Conflict May Damage Stomil-Olsztyn
Product NewsOngoing rows between minority shareholders and main shareholder Michelin may have an adverse effect on company results for 2001. The company is already suffering from decreased demand, a weak Euro and rising raw materials costs. Benoit de la Breteche, president of Stomil’s board said “This year is going to be a difficult one and we should focus on business.”
McLaren Considering Changing Tyres
Product NewsAlthough happy with the performance of Bridgestone tyres, McLaren are said to be considering switching to Michelin next season. The Michelins have performed well for competing team Williams, but are said to need further development. McLaren feel that any improvement in performance from the Michelins could put them at an advantage against arch-rivals Ferrari.
Legal Action Threatened In Poland Against Michelin
Product NewsPress reports say that financial investors in Stomil Olsztyn, the Polish tyre maker, are threatening to take Michelin to court over alleged abuse of the rights of minority shareholders. There is a shareholders meeting, at which the disaffected investors are set to demand the appointment of an independent auditor to look into the financial links between Stomil and Michelin. Failing this, legal action will be taken, says the investors group.
Polish Move By Michelin
Product NewsMichelin is moving to buy out minority shareholders in Polish tyre manufacturer Stomil Olsztyn with whom it was involved in a dispute. There are no plans to call a public bid for shares. Speculation in local press is that Michelin would like to offer around 29 zlotys per Stomil share – a 20% premium on Wednesdays’ closing price.
Business Award For “En Tire”
Product NewsOne year into their partnership, TRW and Michelin announce their first business award with a major European original equipment manufacturer (OEM). The product, called “En Tire”, is a state-of-the-art tyre pressure monitoring (TPM) system underscored by the radio frequency technology of TRW and the tyre experience of Michelin. To extend beyond their existing development programmes, TRW and Michelin are actively the next generation TPM system for production in 2005.
