The French Michelin entered once the fray by automakers-which, in Brazil, a market near 20 million tires per year played between Pirelli, Bridgestone, Continental and Goodyear. The company aims to meet 5% of that volume over the next five years. To do this, began to negotiate with major manufacturers in the country.
Damien Destremau, Vice President of Michelin South America, says that this month, representatives from Volkswagen were the Itatiaia, Rio de Janeiro, to visit the new car tire factory of the Group and the same should be done by Nissan in the coming weeks. The talks have been initiated with Fiat, said the Executive.
From September, the company begins to supply the region's automakers by Itatiaia, prepared to produce up to 5 million tyres a year after receiving investments of € 300 million.
Is already hit the supply for two cars manufactured by French PSA also in the province of Buenos Aires: C4 Pallas, the Citroën sedan, and the 308 hatch, the Peugeot. Both models are already equipped with Michelin tires-however, imported from Europe. Michelin announces that it will also provide for Ford in Argentina, given the Focus, another model that came to use imported tires.
Get to the automakers is one of the strategies of Michelin to double its market share of Brazilian tires, today situated around 8%, according to the company, which puts on channel sales account. The path, however, is over. Of the tests to the closure of the contract, through the approval of the product, the development of the original tires can take more than a year.
But the French are betting on the new automotive system-which set energy efficiency targets at automakers-to play as soon its products on that market. Second Destremau, low resistance to shooting of high performance tires, like those made by the company, can contribute two percentage points to the challenge of automakers to make cars more efficient 12% until 2017, as determines the new automotive policy, published on 3 October.
"Our dialogue with the automakers changed after last October. They rather not showed as much interest as now ", says the Executive, who tyre Division responsible for passenger cars, trucks and motorcycles of the subsidiary.
In addition to the onslaught on the car industry, the "pillars of growth" in the country, such as the Michelin says Destremau, include the expansion of the product portfolio and the strengthening of the brand, which begins this week new advertising campaign on television. Also part of the package the goal of doubling the size of the distribution network, formed today by more than 300 points of sale.
The group plays in the region an investment programme of € 1 billion. In addition to the new line dedicated to passenger cars in Itatiaia-opened eight months ago, the contributions included the 30% expansion in the capacity of the truck tire factory, is located in the city of Rio de Janeiro. "We want, in five years, double in size. Without investing, you can not do this. Our turn begins now, "says the Director.
He says that a new round of investments in the country-to double the production capacity of passenger tires-Michelin will be assessed in the coming years, depending on the responsiveness of the market. According to the Executive, the French multinational already provided for a second phase of expansion when he designed the Itatiaia. "We still have space available. When did phase 1 phase 2 were already on the layout of the project, "he says.
In South America, the company making around € 1.3 billion, or 6% of the revenue of € 21.5 billion registered worldwide over the past year.
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