Michelin’s Edouard Michelin and Continental’s CEO Manfred Wennemer have both spoken to analysts at the Paris Motor Show regarding the prospects for their companies. Michelin says that raw material increases (15 per cent in the first months of the year) will have an adverse effect on 2nd half business. Michelin’s strategy is “to get more value out of the tyre”, which Edouard Michelin says should not be regarded as a commodity. The company will also add production in low labour-cost countries.Continental’s European restructuring is bearing fruit with good economies of scale from concentrating truck tyre production at Puchov. However, the US market “remains difficult”. The current brand mix in the US aftermarket is 80 per cent General Tire, 20 per cent Conti. The aim is to make this nearer 50/50. Wennemer said that the forthcoming “tread act” in the US has great potential for the company in the field of tyre deflation sensors.