Michelin to Ride Truck Tyre Shortage in 2008?
Steadying raw material prices, Michelin’s productivity improvements and increased truck tyre demand could lead to a “favourable price environment” for the company, according to Deutsche Bank analysts. The theory relies on demand increases in the North American market. If this was to happen in 2008, say the analysts, there is a risk of an imbalance between global supply (set to increase by 5.0 million units) and demand (which could rise by 8.0 million units). According to the analysts, truck tyre sales represent 34 per cent of Michelin revenues versus 10 per cent at Continental, for example.