News from Notch Consulting, Inc.

March 22, 2008

Michelin Presents New Generation of Green Tires at Geneva

Filed under: Carbon Black, Silica, Tires — Notch @ 12:01 pm

Michelin presented its latest generation of green tires, the Michelin Energy Saver, at the Geneva International Motorshow, held March 6-16. The tires were recently certified on Mercedes Class B and C vehicles, bolstering prior certifications on Volvo (C30 Efficiency, S80 and V70), Fiat (500 and Fiorino), Renault (Clio and Twingo) and Toyota (Yaris). The tires represent the fourth generation of Michelin’s green tire line, and were launched in Europe, the Middle East, South Africa and South America beginning in 2008. The tires use highly dispersible silica instead of carbon black in the tread compound to reduce rolling resistance.

By generating fuel savings of nearly 0.2 liters per 100 km in combined city and highway driving*, it reduces CO2 emissions by 4 g per km and the cost of a full tank of gasoline by almost €2.00 (or CHF 3.22)**. As a result, the tire pays for itself in 45,000 km.

*ISO test conducted by Germany’s TÜV SÜD Automotive in 2007 on store-bought 175/65 R14, 195/65 R15 and 205/55 R16 tires produced by five major-brand manufacturers.
**Based on a diesel-powered vehicle that consumes around 6 liters per 100 km with fuel priced at an average of €1.20 (CHF 1.93) a liter.

Here is the press release.

Michelin to Index OE Tire Pricing to Oil Prices

Filed under: Tires — Notch @ 11:03 am

Michelin plans to introduce a new pricing system for passenger and light truck tires sold into OE markets that will include an adjuster for oil prices. The change will take effect on April 1, 2008. According to Michelin, petroleum-based products account for nearly 60% of the cost of a passenger tire.

The press release is reprinted below. Here is a link.

Michelin Group Announces Price Increase and New Pricing System for Automaker Customers
(Paris – March 21, 2008) – In response to soaring oil prices, Michelin has introduced a new tire pricing system for customers in the automobile industry that will clearly distinguish the effects of petroleum-based raw materials from the intrinsic value of Michelin tires.

With petroleum-based products accounting for approximately 60 percent of the cost of a passenger car or light truck tire, the recent dramatic increase in oil prices has had an impact on the cost of Michelin tire.

As a result, Michelin will adjust its prices based on a scale indexed to changes in oil prices. The system is a pledge of transparency and clarity in Michelin’s relations with automakers.

Scheduled to take effect as of April 1, 2008, the new price schedule will be applied to all passenger car and light truck tires sold to automobile manufacturers worldwide.

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