Two levers for growth
and value creation
and with our customers
Innovation enables us to differentiate our products and services and justify their premium price positioning, based on the power of the MICHELIN brand.
We are investing and organizing our operations to innovate more efficiently and faster, so that we can offer customers superior, long-lasting performance aligned with the sustainable development aspirations of today’s society.
Michelin is the world’s foremost driver of innovation in sustainable mobility, with more than 300 research partnerships, as well as incubators, accelerators, a venture capital fund, joint ventures and co-developments, and a reputation as a trusted third party in sustainable mobility.
A WINNING COMBINATION FOR PREMIUM 18-INCH AND LARGER TIRES
Michelin’s robust growth in this buoyant, profitable segment is being driven by its technological leadership and the power of the MICHELIN brand. OEMs and end-users alike appreciate the outstanding performance of Michelin tires and remain loyal to the brand, feeding through to higher replacement sales.
In 2019, 43% of Michelin-brand tire volumes sold during the year were 18-inch or larger models, compared with 39% in 2018. In 2023, they are expected to account for more than half.
To offset rising costs and finance future-facing investments, we have to constantly improve the competitiveness of our manufacturing facilities and dealerships. Programs now underway are expected to deliver €1.2 billion in gross savings over the 2017-2020 period.
MORE PRODUCTIVE plants
|Percentage of output
from plants with capacity
exceeding 100,000 t/year
|Capacity utilization rate||75%||84%||≥ 90%|
60 DEMONSTRATOR UNITS UP AND RUNNING
Digital manufacturing is putting the latest technology to work on the production line to increase plant productivity and improve the quality of our products and customer service. At Michelin, Industry 4.0 is becoming a reality, with more than 60 demonstrators now up and running in five main areas: maintenance, quality, supply chain, training, and remote control, automation and human/machine collaboration.
INDUSTRIAL REORGANIZATION PROGRAMS:
SUPPORTING AND REVITALIZING
In response to structural shifts in their markets, the production plants in La Roche-sur-Yon, France and Bamberg, Germany will be closed in 2020 and 2021. Every employee will be offered a placement solution and appropriate training. A search is underway for opportunities to repurpose both sites, along the lines of the conversion of the Dundee, Scotland site into an innovation park for companies in sustainable mobility markets.