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.
The argument against prematurely dismounting tyres voiced by Michelin here in the UK and in Europe has become a topic of conversation at the North American International Auto Show in Detroit this week. The tyre maker’s global initiative to promote consumer awareness was presented at the show yesterday by Michelin North America’s recently-appointed chairman and president, Scott Clark.
Almost 40 per cent of cars in the UK are running on at least one tyre that is “dangerously” or “very dangerously” underinflated.
The figures come after Michelin and Kwik Fit inspected more than 500 vehicles in Tesco car parks around the UK.
Michelin classifies tyres that are between 7psi and 14psi below the manufacturer’s recommendation as “dangerously underinflated”, while 14 psi or more underinflation is deemed to be “very dangerous.”
In addition to the X Tweel SSL, another Michelin innovation will make its UK debut at the Lamma show. This is the ‘2 in 1’ tyre, the Michelin EvoBib.
Michelin’s X Tweel SSL airless tyre and wheel combination will make its UK public debut at Lamma 2018 later this month. The skid steer loader fitment is the first Tweel model to arrive this side of the Atlantic. It comes to market in January and will be available in two versions – the All Terrain (AT), which features a deep, open tread for off-road applications and use on varying surfaces, and the Hard Surface Traction (HST), with its smooth tread featuring a 100 per cent contact patch, for frequent use on hard surfaces such as asphalt or concrete.
In order to clear any consfusion arising from the announcement that Michelin and Sumitomo Corporation of Americas (SCOA) are forming a joint venture to pool tyre wholesale resources in the USA and Mexico, the Micheldever Group has issued a statement stressing that it is not in any way connected with Sumitomo Corporation or its North American subsidiary.
As of 1 January 2018, Michelin is restructuring its global organisation into ten newly-created regions. The UK finds itself in what has been named the Michelin Europe North region, along with Austria, Denmark, Finland, Germany, Iceland, Ireland, Norway, Sweden and Switzerland. Covering the former sales regions for Germany/Austria/Switzerland, the UK and the Nordics, the new regional operation is led by Anish K Taneja, who from the start of the year holds the post of chief executive officer, Michelin Europe North.
Michelin has announced the successful placement of a US$600 million offering of non-dilutive cash-settled convertible bonds due 2023 (the “Bonds”) following the exercise in full of the increase option. Concurrently, Michelin purchased cash-settled call options (the “Call Options”) to hedge its economic exposure to the potential exercise of the conversion rights embedded in the Bonds. Since they will only be cash-settled, the Bonds will not result in the issuance of new shares or the delivery of existing shares of Michelin (the “Shares”) upon conversion.
Aesthetics are decisive when choosing a new car, and large diameter rims and low-profile tyres now even feature on the options list for lower performance models. But while kitting a car out with this combination bumps up its sporting credentials a notch or two, your pride and joy no longer looks the part when standing immobile at the side of the road, tyre destroyed and rim ruined after an encounter with a pothole.
Last September, Michelin and Maxion Wheels jointly presented a flexible wheel solution that features the tyre maker’s Acorus Technology. This solution has been adopted by French driverless vehicle specialist Navya for its autonomous electric shuttle bus, which is already on the roads in five cities around the world. The electric city shuttle is now making its debut in London.
Today, Michelin has announced the launch of a US$500 million offering of non-dilutive cash-settled convertible bonds due 2023 (the Bonds), which may be increased up to $600 million if the increase option is exercised in full. Michelin will purchase cash-settled call options (the Call Options) to hedge its economic exposure to the potential exercise of the conversion rights embedded in the Bonds. Since they will only be cash-settled, the Bonds will not result in the issuance of new shares or the delivery of existing shares of Michelin (the Shares) upon conversion. This US dollar‑denominated debt will be immediately converted into euros.
With the creation of a 50-50 joint venture, Michelin North America Inc. says it and Sumitomo Corporation of Americas will form the second-largest player in the United States’ wholesale tyre market. The two companies have entered into a definitive agreement to combine their respective North American replacement tyre distribution and related service operations. The transaction is subject to customary approvals.
Having drawn upon experience in World Endurance and national championships when developing tyres for its return to MotoGP after an absence of seven years, in 2016 Michelin experienced an inaugural season in which it claimed to have engineered more developments than during its seven years working in other motorcycle racing disciplines. When the fun began again in Qatar in March, Michelin already had a season as tyre supplier under its belt, and accordingly the focus had shifted to building upon this flurry of engineering work.
At the end of this year, Pete Selleck’s six-year tenure as chairman and president of Michelin North America will come to an end, and the Michelin Group has named Scott Clark his successor. Clark begins in these roles on 1 January 2018. In addition, Joanie Martin also has been named chief administrative officer, a newly created role in the company.
For the past few years, Michelin has sold its Tweel airless tyre and wheel combination in North America, with products for garden, agricultural and industrial applications currently available. Customers here can now get to know Tweel as well, as from 2018 Michelin will introduce its non-pneumatic product on this side of the Pond.
Michelin reports an aim of growing online sales through its Euromaster retail network in the UK and Europe by 25 per cent in 2018. This projected growth follows a 30 per cent increase in online sales through Euromaster this year, with online sales accounting for 15 per cent of all Euromaster sales in 2017.
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