Pirelli aiming to be "global premium leader" by 2015
Following the publication of positive nine-month figures yesterday (8 November), Pirelli chairmain Marco Tronchetti Provera today released details of the manufacturer's goals between now and 2015. The headlining statement of intent is the desire to be "global premium leader" (following a so-called "local by local" strategy) by 2015. And in order to achieve this Pirelli is increasing capital investment up to a value of 2.2 billion euros for the period 2011-2015.
Pointing out that Europe is still the number one global market when it comes to premium tyre sales (54 per cent of the global tyre business), and that this is predicted to grow 8 per cent by 2015, Tronchetti Provera confirmed earlier analyst reports that Pirelli was issuing higher margin targets – now an estimated EBIT of 15-16 per cent by 2014. The tyre industry is seen as less cyclical than car business, but a slowdown scenario is still projected for 2012, making the new profitability targets stand out that much more.
The Pirelli research and development department has reportedly completed development of its own TPMS/RFID system for truck fleets. This will be available for commercial vehicles (then cars) in 2012, seven years after Pirelli previewed the technology to journalists in 2005. A second generation fully sensatised version of the system (measuring friction, wear and aquaplaning performance) is scheduled to hit the market three years later in 2015.
Bio-friendly silica in production
Another technological development that Pirelli has highlighted in the past appears to have made it to market much faster. According to Pirelli, the company’s bio-friendly rice husk sillica is already in production in its Brazil factory. And what is more, this sustainable material is projected to account for 30 per cent of Pirelli Latin American consumption by 2015. This and other future developments will be facilitated by the decision to develop a web of regional R&D centres, allowing better mutual feedback from customers according to Pirelli. Meanwhile the manufacturer is targeting a 30 per cent reduction in rolling resistance in Scorpion 4×4-SUV range by 2015.
On the subject of South East Asian business, Pirelli has signed a JV with a “local Indonesian player” for motorbike tyre production.