Michelin to Hold-Off Price Rises in Europe
Michelin does not envisage raising prices in Europe at the moment, despite price increases in North America and Japan. “Our philosophy has not changed, we reflect the rise in the prices of the raw materials in our selling prices,” Reuters quoted one Michelin spokesperson as saying. Michelin’s last price increase in Europe was a year ago.
Michelin also declared its intention to raise its prices in Japan from 1 February, in order to compensate for the increase in the cost of raw materials. The company had earlier agreed a 5 per cent price increase for its Michelin and BF Goodrich passenger car products in the North American market.
Michelin does not publish its sales figures by country, however, last year, it carried out 86 per cent of its sales were in Europe and North America.
Penalized in particular by the increase of the dollar compared to the euro, Michelin expects to see the material cost first increasing this year from 400 to 450 million euros compared to 2004.