MICHELIN - 2008 ANNUAL REPORT

90%
of respondents quote fuel
efficiency as important when
selecting a vehicle, especially
in emerging countries (1) .
(1) Capgemini Cars Online 2008/2009 –
10 th edition.
20%
For a 20% reduction of tire rolling
resistance, a truck fleet will cut its
fuel consumption by up to 6%,
translating into 1% to 2% overall
fuel bill cost savings.
50%
of the large Western
European fleets have
entered into tire
management contracts.
Michelin at a Glance
Tires account for 2-3% of a truck fleet’s
operating costs, a significant cost since
it is roughly the equivalent of the sector’s
operating margin. But above all, tires have
a major impact on fuel consumption, which
alone accounts for up to 30% of truck fleet
operating costs.
The larger fleets manage their tire resources
professionally. Their original equipment
procurement policies are brand-oriented and
their tire choice is maintained at replacement
time. The overall cost, which includes
mileage performance, retreaded life and fuel
savings, is key to this choice. Solutions that
combine tire products, maintenance and
services clearly enhance the truck fleet
operators’ competitive edge by improving
vehicle mobility and uptime.
In developed countries, truck tire distribution
is mainly handled by specialist dealers and
through direct sales to large fleets. Trends
in this sector are for truck-side maintenance
services aimed at minimizing downtime.
Specialty Tire Markets:
increasingly radialized
The Specialty tire markets, covering highly
different sectors, account for a little over
10% of world tire sales. Specialty tires are
highly technical products and a segment
where offering is constantly enriched.
Raw material demand, the development
of infrastructure and international trade all
support earthmover tire demand, especially
in the mining, public works and handling
segments.
Due to the gradual build up of industrial
capacity by the principal tire manufacturers
and the current market slowdown, the gap
between supply and demand is narrowing.
Always more competitive, modern-day
agriculture must address the new
requirements of respect for the environment
and sustainable development. Farming is
increasingly intensive and relies on more and
more powerful machinery. To match these
requirements, agricultural tires must carry
heavier loads while reducing fuel
consumption and soil compaction.
The aircraft tire market is quickly switching
to radial tire technology with the
development of new generation aircraft
by Airbus, Boeing, ATR or Embraer. Indeed,
the strong increase in oil prices in 2008 has
accelerated the replacement of the older
more fuel-consuming aircraft by more recent
generations, mainly fitted with radial tires.
Turning to motorcycle tires, large motorcycles
still prevail in North America while the sports
performance segment is most buoyant in
Europe, where a new segment of large
scooters is booming. The smaller
motorcycles, which are the most popular
form of transportation there, continue to
post strong growth in all emerging markets.
Maps, guides, and digital services for
travelers: highly competitive markets
The Guides market is characterized by
increasing competition and the number of
players has grown in recent years. The Maps
and Atlases market has been affected by
competition from web-based route finding
services and GPS.
Michelin is an active player in Europe’s
digital travel-enabling market. Its ViaMichelin
subsidiary offers a complete range of mobilityenabling
products and services to all road users.
Product licensing: worldwide potential
Product licensing accounts for a growing and
influential share of the highly competitive
retail sector. The industry is very
concentrated: the top 100 licensees account
for 75% of the licensed product market,
which is worth USD 190 billion.
While leisure and sports industries represent
the bulk of the market, large industrial
players account for a significant share.
In 2008, Michelin Lifestyle, whose mission is
to leverage the value of the MICHELIN brand,
occupied 61 st position in the world.
Other Information
Additional Information Consolidated Financial Statements The Managing Partners’ Report
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