Known for its style, speed and performance marketing values, Pirelli & C. S.p.A. is a multinational company based in Milan, Italy, listed on the Milan Stock Exchange since 1922, with a temporary privatization period by the consortium led by the Chinese state-owned enterprise ChemChina.
In an interview with Italy’s Il Giornale newspaper, Pirelli CEO Dr Francesco Gori said he estimates that European tyre market to fall 10 per cent during 2009. He noted that the “second and third quarters will be crucial” for the market, as he foresees that the “general halt” caused by economic crisis in the first quarter will be compensated by the October to December period.
It appears as if Pirelli is seeking further voluntary redundancies amongst it production staff in Carlisle. The company has confirmed this in a statement, however at this stage it is not clear how many positions will be cut.
Pirelli says it has informed senior trade union officials at both its Burton on Trent and Carlisle plants that it is willing to consider voluntary redundancy applications from production workers and supporting services. Information about the cutbacks was given as a second five-day shutdown, the result of falling demand, began on April 8.
Market analysts are predicting tyre industry sell-in sales volumes will improve sharply in the second quarter of 2009. Morgan Stanley experts explained in an investor’s note issued on 9 April that production cuts of between 40 and 60 per cent in OE and 10 to 40 per cent in replacement tyre production in January and February were “far more draconian than anticipated,” but nonetheless “deliberate and forthright” action. “We estimate Michelin’s sell-in tyre volume through the first two months of the year has declined approximately 20 per cent, assuming constant market share. Simply put, we believe this pace of volume decline is not sustainable,” the analysts commented.
The theory is that dealers that de-stocked tyres rather than purchase additional products at the beginning of 2009 are currently, or will soon, run low on inventory and therefore tyre factories must start running again. “We forecast Michelin tyre volume down 6.6 per cent for the full year, implying rest-of-year volumes down 3.9 per cent. At a minimum, we expect the extraordinary pace of volume decline to diminish sharply and soon.”
From an ecological point of view, the new Pirelli Cinturato P7 offers three headline benefits – a CO2 emission reduction of up to 4 grams per kilometre driven, 30 per cent lower noise emissions and a 4 per cent fuel saving. Pirelli’s clincher (particularly aimed at current and potential OE customers) is that it is already in position to meet the targets set by the new EU regulations that are due to take effect from 2011 and that it does this without compromising on wet or dry performance. However, none of this explains how the company is able to achieve these goals.
In mid-February, Pirelli gave details of how its 2009 – 2011 industrial plan means the company will have an increasingly “green” focus. In particular Pirelli committed to developing a series of new materials that for use in tyre compounds. One particular silica rich material is rice husk ash (RHA). Pirelli is already (as far as the technological requirements are concerned) in a position to use this material in tyre production this year. However, the material is currently the subject of a large scale viability study focusing on the availability of the kind of tonnages needed for tyre industral scale tyre manufacturing. Tyres & Accessories understands that Pirelli already has research and development teams in place in Brazil and the areas surround Milan, which just happen to be some of the best rice production areas in the world.
Citroen driver Sebastien Loeb maintained his dominance of the 2009 World Rally Championship with victory on the fourth round of the series, the Rally of Portugal, which ended in Faro on Sunday afternoon (5 April). There’s nothing new there, considering Loeb’s early season form, though the Portuguese WRC stage represented a landmark worthy of note for tyre suppliers Pirelli. The Italian giant’s Star Driver scheme – undertaken with collaboration from the FIA in order to develop new young drivers – inaugurated five new drivers, all of whom will compete at a further five events. Jarkko Nikara of Finland, Nicos Thomas from Cyprus, the Czech Republic’s Martin Semerad, Mark Tapper from New Zealand and South African Jon Williams tackled Portugal as the first stage in their WRC education.
Pirelli rally manager Mario Isola said, “We are very pleased with the way this event has gone. We had no problems with the tyres. Okay, there were some punctures caused by accidents, but otherwise the hard-compound Scorpion tyre coped very well with the conditions. This has been another very strong drive from Sebastien Loeb, but once again we saw Ford pushing Citroen hard. This was also a historic rally for Pirelli with the Star Driver Scheme. This association with the FIA to help young drivers in the sport has made us very proud as a company. All five of the drivers have performed well and we now look ahead to the rest of the season with these exciting guys.”
Pirelli has launched a new version of its P7 tyre – the P7 Cinturato. In addition to offering the kind of high performance edge characteristic of the Pirelli brand, the new tyre features a 20 per cent reduction in rolling resistance which, according to company figures, results in a 4 per cent reduction in fuel consumption. Pirelli’s decision to offer a high performance eco-tyre is immaculately timed as it follows the first reading publication of new EU laws raising the bar in terms of rolling resistance, noise pollution and wet-braking performance – all areas that Pirelli’s R&D department have improved upon the standard product in the development of the P7 Cinturato.
The launch of the new tyre, which was originally scheduled for 2010, was brought forward a year in light of the new regulations and following unprecedented drops in tyre sales at the end of 2008 and through the first quarter of 2009. With this in mind the launch can also be seen as a kind or proactive market impetus – offering tyre customers and end-consumers a something of high quality and performance that also offers potential fuel savings and ecological benefits. Green tyres are not new, but till now they have largely been combined to smaller cars and have reportedly conceded performance for fuel economy. Pirelli officially presented the Cinturato P7 at the Nardò International Test Track on 3 April.
Motorcycle News (MCN) has published an article this week that ranks the new Dunlop Qualifier II tyre above its nearest competitors, following a testing session at the manufacturer’s test track in the south of France during the official launch in mid March. Senior road tester at MCN, Michael Neeves, tested the tyre in the wet and dry. His report claims that the new Dunlop tyre is “2009’s most important sports tyre.”
The Dunlop Sportmax Qualifier II is the latest in Dunlop’s motorcycle offering, entering the sports tyre market. It features a Multi-Tread compound with a directional tread design. The manufacturer says that it provides improved performance whilst reducing step wear. The tyre also benefits from a new compound mix, enabling a broader range of operating temperatures, and therefore – claims Dunlop – faster-warm up times, even at low external temperatures, alongside greater wet and dry road grip and high speed stability.
DM Marketing LLC is an international tyre trading firm operated by UHP and private brand tyre trade specialist Don Mathis. Mathis has been active in the UHP segment of the market since 1976, when he was with Pirelli for the introduction of the original P7. From late 1979 until today he has dealt internationally, specializing in the UHP business. During a nine-year term with ZT Wholesale, he built the Wanli brand in the USA to over 550,000 annual UHP unit sales.
Mathis also has extensive experience when it comes to doing business in the Far East. Three years ago, he was the only American displaying at CITExpo, and is well known with most major European dealers. Recently serving as the general manager for the US operation of Sentaida International, Mathis established and built the Lexani and Diamondback tyre brands in the US and around the world. Today he is still working with the Diamondback brand to further develop the product line and establish global distribution. According to company literature, DM Marketing will continue to specialize in UHP for major brands, but also offers PCR, TBR and S/T trailer tyres. “We will soon offer new private brands in both UHP and PCR for exclusive worldwide distribution,” Mathis told Tyres & Accessories.
Fire crews attended a callout to the Pirelli factory in Burton on the morning of March 30 after a blaze was reported at the site. Upon arriving at the premises at 7am, firefighters discovered a forklift truck on the first floor of the factory’s manufacturing plant was on fire. The fire was brought under control within about three quarters of an hour, but it is not yet known how much damage has been caused.
TyrexpoAsia 2009 has been described as “an important platform for buyers and sellers and key decision makers in the global tyre and equipment market,” by prominent Singapore Member of Parliament Inderjit Singh MP. Mr Singh made the remarks during the show’s opening today (Tuesday 24th March) at the Singapore Expo Centre. He told a reportedly packed audience that the exhibition “created valuable opportunities to tap into a wealth of networking and business opportunities for event organisers and business delegates.”
Mr Singh, the deputy government whip, said that the automotive sector will be a key beneficiary of the success of Singapore as a centre for the rubber and tyre industries. The country’s pivotal position in the Asian tyre market is underlined by the presence of major companies with headquarters in the island state.
The only video game to bear the name of a tyre manufacturer in its title racing simulation Ferrari Challenge: Trofeo Pirelli has been shortlisted in the 2008 North East Digital Awards in the Best Example of Game Development category. The game was developed by Gateshead-based driving game specialist Eutechnyx.
“Ferrari Challenge was a labour of love for Eutechnyx and so you can imagine how pleased we were when it was so well-received by the audience and critics,” said Brian Jobling, Managing Director of Eutechnyx, “To now be recognised in the North East Digital Awards is a great honour.”
Published by System 3 in the UK and by Activision-Blizzard in the US, Ferrari Challenge: Trofeo Pirelli was released in the Summer of 2008 on PlayStation 3, PlayStation 2 and Nintendo Wii. Offering players the chance to race some of the world’s most prestigious and desirable cars, the game uses Eutechnyx’ IAM– Intelligent Assist Mode– Technology to tailor the game to suit the player’s skill level and allows gamers to choose how real they want their racing experience to be. This gives players a unique gaming experience suited to their skill level to ensure a fun, exciting challenge.
Pirelli has snagged itself a new 24-hour world record for the duration of its recently launched Angel ST motorcycle tyre. The record was set at the Nardò Technical Centre in southern Italy by Pirelli testers and international journalists riding a 2009 Suzuki Hayabusa 3,190.8 miles at an average speed of 132.9 mph. The test was designed to simulate a road distance of 7,500 miles at speeds of 50-65 mph.
A second bike, a 2009 Kawasaki GTR 1400 also shod with Angel STs also claimed six other records, including the 12-hour world record of 1,555.2 miles at 129.6 mph on average.
Pirelli chairman and CEO Marco Tronchetti Provera has stated that the company should reach the end of 2009 with a profit, Reuters is reporting. Quoted by a spokesperson at a company presentation in Milan, Tronchetti Provera said, “We are fairly optimistic that in 2009 things will change. The market is moving, the measures taken in 2008 and being carried out in 2009 are producing results.”
Thanks to a major restructuring process mainly involving the company’s real estate division and the general global financial turmoil, Pirelli finished 2008 with a net loss of 412.5 million euros, though recent stock performance has seen a small upturn in the past week.
A new financial and strategic report on Pirelli has been made available by analysts Companies and Markets. The firm promises to present “an in-depth business, strategic and financial analysis of Pirelli, providing “a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis and views on the company.”
In addition to the provision of a “one-stop-shop” to understanding Pirelli, the review offers a financial, strategic and operational SWOT analysis; business structure, history and product information; and “financial ratios for the past five years as well as interim ratios for the last four quarters,” including profitability, margins and returns, liquidity and leverage, financial position and efficiency.
Drivers at the upcoming Cyprus round of the World Rally Championship are to face an increased challenge on the island following the decision to supply competitors with only hard compound gravel tyres, despite the change of format to include a first day on asphalt in addition to the more traditional gravel surfaces of the later stages.
Mario Isola, the rally manager at Pirelli – the official tyre supplier to the WRC – stated, “this is a very demanding situation for our gravel tyres and surely the skills required from the drivers will be somewhat different. There is surely less grip but everyone has been surprised by how well the tyres stood up in the tests.”
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