Market Recovery Mixed, Says Michelin Executive
Comments made during the launch of Michelin’s first global marketing campaign point towards a mixed outlook for the tyre market. Reuters reports Claire Dorland-Clauzel, head of communications and brands and a member of the group's management board as saying demand for passenger car and light commercial vehicle tyres is improving in Europe and the United State, while signs of an upturn in the commercial vehicle tyre market are yet to be seen.
“Today we’re seeing a clear upturn in demand for replacement light vehicle tyres,” said Dorland-Clauzel, adding Michelin first noticed an increase in demand just before the summer as distributors began to restock after making harsh inventory cutbacks. However Dorland-Clauzel noted the company was “remaining cautious” about the truck tyre market.
The Michelin executive provided this information at the launch of the tyre major’s first global, television, print and internet advertising campaign. While she declined to specify Michelin’s budget for the campaign, which will eventually run in nearly every country in which Michelin is present, Dorland-Clauzel commented that Michelin has set aside US$20 million in the coming quarter and US$40 million in 2010 for the campaign’s US market presence.