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.
Michelin served as a partner at the 2017 FIM International Six Days of Enduro (ISDE), which took place in France at the end of August and start of September, and during this event it announced the start of sale of its latest enduro tyres, which took four years to develop.
In something of a coup for the French manufacturer, Michelin has regained both the global and UK crowns in Tyres & Accessories’ annual report on social media influence. Meanwhile, India’s largest tyremaker, MRF Tyres, will have surprised many by rising six places into third place on the global table.
Michelin’s latest tyres for the 4×4 segment exemplify the ongoing trend for the increasing focus on road handling characteristics, following the sustained strong growth of SUVs across Europe. While the manufacturer has extended its successful CrossClimate “summer tyre with winter capabilities” to the larger fitments required to supply the segment, the latest tyre from its off-road specialist brand BFGoodrich is the most indicative of this developmental direction. It states that the BFGoodrich Urban Terrain T/A is made for “taming the urban jungle,” offering increased toughness to SUV and urban crossover drivers.
Passenger transport operator Abellio has appointed Michelin solutions to supply, fit and manage its tyres on a cost-per-mile Effitires contract for the next five years. The company, which operates an 800-strong single and double-deck bus fleet, has returned to Michelin after moving to a rival manufacturer in 2012. As part of the agreement, Abellio will become involved in new product testing for Michelin to support the development of the company’s next generation of urban tyres.
According to the latest statistics on the UK commercial vehicle industry, the number of medium to large commercial vehicle operators has been rising in the last five years. This represents an opportunity for outsourced tyre contract and service providers, as larger fleets present an increasingly complex task to manage their tyre usage, and associated servicing. Michelin solutions estimates that 42 per cent of truck fleets in the UK operating 51 or more vehicles are still purchasing tyres on a transactional basis, and therefore managing them in-house. It argues that this process is likely increasing their costs and environmental footprint.
Wheelmaker to make joint product announcement with Michelin on 13 September 2017.
A team of Michelin employees successfully cycled up Mount Ventoux in France and raised over £2,000 in the process. The adventure forms the first leg in a series of challenges to raise funds for Michelin’s chosen charity for 2017 – the Peter Pan Centre. The charity offers care, support and education to children from birth to the age of 5 with special needs, which can range from visual and hearing impairments through to chromosomal abnormalities and life limiting conditions.
For the third consecutive year, the Reputation Institute, which ranks brands around the world according to their reputation, has put Michelin at the head of the French rankings and 13th globally. The tyre maker is also the French brand with the best reputation in the United Kingdom, and also in the United States, China, Germany and Italy.
During the first half of the year, Michelin increased both sales and net income on the back of higher volumes. Net sales were up 7.5 per cent to 11.1 billion euros in the six months to 30 June, and while operating income declined 0.8 per cent year-on-year to 1.4 billion euros (with the margin down 1.1 per cent to 12.6 per cent), the tyre maker described this result as “stable and in line with the Group’s roadmap.” Net income rose 12.2 per cent to 863 million euros.
In the preamble to its 2017 tyre test, Evo magazine observes that “all tyres are black and round and keep your alloys off the ground, but all tyres are not created equal.” Well said, and true. To help its readers find the rubber that best suits their budgets and requirements, evo has tested nine tyre brands in the popular 225/40 R18 size. The results can be found in the current issue (evo #238), and they’re good news for Michelin.
During the course of 2016, the workforce at Michelin submitted almost 60,000 ideas and suggestions to an online portal the tyre maker runs for this purpose. From these suggestions entered into the Progressive Ideas project’s ‘InnovaGO’ platform, Michelin states that 26,519 were “made a reality” and some 3,400 were “specially evaluated.” This final group of submissions is said to have led to net savings of 20.6 million euros.
Michelin has updated local dignitaries, staff and business partners on its multi-million pound investment plans in Stoke-on-Trent. Proceedings were opened by Mike Lawton, head of communications at Michelin Northern Europe, who described what was announced in the “investing in the future” presentation as the “dawning of a new era”, before head of Michelin Northern Region John Young spoke of the “amazing” relational, business footprint and heritage of the site. To put recent changes into a single figure, productivity across the site has reportedly increased 35 per cent in the last five years.
Havas Media has been awarded Michelin’s global media account, and takes over from long-time partner MEC this month. The agency threw its hat into the ring to gain the account earlier this year, and will take on responsibility for media planning and buying duties in all major markets.
Former Fleetcor Technologies business NexTraq is now a wholly-owned subsidiary of Michelin North America following the completion of its all-cash acquisition.
Demand for car and light commercial vehicle tyres in Europe declined year-on-year in June. In its monthly market update, Michelin reports that demand for both original equipment and replacement market tyres was two per cent lower compared with June 2016. The tyre maker comments that this weakening demand was driven by sell-in price increases against a backdrop of slowing sales momentum. For the year to 30 June, demand in the original equipment market was up one per cent year-on-year, while demand in the replacement segment is two per cent higher.
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