Michelin couv courteGB

● Company-owned distribution
is of strategic importance. It boosts
the performance of the Passenger
Car–Light Truck and Truck activities
in terms of growth and return
on investment, particularly in mature
markets. It drives sales, grows market
share and leverages the Group’s products
through service. It also serves as a tool
to gain a better understanding
of markets and trends.
In order to improve the direct contribution
from these activities, the Group undertook a
major reorganization program in Europe with
priority given to expanding services, notably
with heavy and light vehicle fleets.
● 2004 ushered in a vigorous cost control
program and saw the completion
of Euromaster’s integration of Viborg’s
European distribution network,
acquired in 2003.
Strategy • Fundamentals Businesses Earnings
Distribution
Strategy Ambitious turnaround program
for Euromaster
Europe
With 1,700 sales outlets, Euromaster
is Europe’s biggest tire distributor.
World
Over and above Company-owned
distribution, Michelin develops
independent tire distribution networks
that share a hallmark banner, such as
the TyrePlus. In China, 100 stores sport
the TyrePlus name and in Russia, 50.
Tyreplus is also expanding in Thailand
and Australia.
Euromaster completed the integration of 465 Viborg sales
outlets, mainly located in Germany, Europe’s biggest
Replacement tire market, and in Denmark. Aggregate sales
remained unchanged. Priority was assigned to turning
around the new entity’s operating results.
Significant improvements were made in cost cutting, inventory
management and customer credit, but the picture remains
mixed depending on the country. Performance improved in
France, particularly due to expanded value-added products
and services provided to passenger car fleets.
The overall portion of Michelin’s brands grew as a percentage
of Euromaster’s sales in Passenger Car and Truck tires.
Transition year at TCI
Sales and operating earnings at Tire Centers, which has more
than 160 sales outlets in the United States, did not meet
Michelin’s expectations. However, its good geographic
coverage and Michelin Retread Technologies’ retread
production capacity were a powerful draw for major U.S.
heavy hauling fleets, which chose Michelin as their principal
supplier in 2004. In Passenger Cars, where TCI operates chiefly
as a wholesale supplier to independent dealers, sales held up
well, and three new centers were added to the network.
4,637
4,859
02 03 04
4,846
Net sales of Other
Businesses*
in € million: - 0.3%
Excludes inter-sector sales
* Specialty tires, Wheels,
Distribution, Publishing, ViaMichelin
and Michelin Lifestyle.
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