‘Stay in your lane’

Next Article

200 locations within 36 months

“The fact we have a car parc that is going to be electrified is a really unique opportunity,” says Garcin. “I really encourage our partners to invest in that segment so that we can really be ready to understand what are the specific features those end users request and what are the right tires we need to put on those cars.”

MTD: As tire dealers continue to diversify the offerings they make available to their customers, can you elaborate on your plans for Michelin’s services and solutions business and how dealers will benefit from what will be developed? Garcin: Our tire dealers are at the center of our strategy. We know today that the younger generation is already much more sensitive to the environmental question than maybe the older generation. By the fact that we are investing in (this) domain, we will be the ones that will support our dealers to have the right value proposition in the future because those environmental features in our tires will be even more important than (they are) today. The role of the tire dealer will be critical because we don’t invest in our own capabilities to deploy and execute those services. We do that with our service network partners and with retailers because we believe that there is no way we can do that today alone. Because of the nature of the thing now — that everything is getting digital and we have to move fast — we have to work in an ecosystem. That’s why I truly mean it when I say our dealers are at the center of our strategy.

MTD: Currently, electric vehicles (EVs) make up a small percentage of the North American vehicle population, but that is expected to change. What will the shift different materials and different expertise to make sure you are able to combine all of the performance that is expected by car manufacturers and end users.

MTD: Minimizing performance tradeoffs has always been an aspiration of tire manufacturers, but it seems even more critical now with the various dynamics that EVs present. Garcin: Exactly. We’ve recently launched two tires — both in Europe — and both are about to come to North America. The first is on the passenger car (side). We call it the e.Primacy and this tire provides up to 7% more range for electric vehicles because of its optimization of rolling resistance. And we just unveiled the Pilot Sport EV, which is a specific tire designed for electric sports cars. This tire is providing up to 37 miles of additional range because of its unique ability to minimize rolling resistance, while making no compromise on longevity, wet to EVs mean for tire dealers and how grip and safety. should they prepare for this new reality? Garcin: This is one of the greatest oppor- MTD: As the light at the end of the tunities we have together. You might think COVID-19 tunnel appears on the horizon, the evolution is slow, but what I can tell what’s your take on the North American you from what I’ve seen all over the world tire market for the rest of the year and is that this trend is going to accelerate into next year? dramatically, including in the U.S. There is Garcin: Since March, we’re now compara massive wave that is surging all over the ing ourselves to 2019 and what I can tell world and (with) the (you) is that today we latest announcements are seeing businesses we’ve seen in the U.S., it’s going to happen here, too. ‘I believe the automotive market is on the cusp of that are recovering to pre-COVID levels.

What does that its largest revolution ever.’ MTD: What are the mean for us? It’s a — Alexis Garcin, top challenges facing strong opportunity chairman and president, Michelin and other because those tires Michelin North America Inc. tiremakers who will require an enor- operate in the North mous amount of technology. It will help our American market over the next few years? dealers to differentiate ... tires because to be Garcin: Given the dynamics of our market, able to maximize the range of the vehicle ... I see many, many opportunities. The fact we without compromising wet braking, safety have a car parc that is going to be electrified, and the longevity of the tire, you need to this is a really unique opportunity. And I be an expert and have strong expertise in really encourage our partners to invest high-tech materials. And I think this will in that segment so that we can really be drive different business to our partners. ready to understand what are the specific features that those end users request and MTD: As EV technology evolves, tire what are the right tires we need to put on technology will have to evolve along with it. those cars. Garcin: Absolutely. Again, it comes back Our job as a mobility provider is to to the question of expertise that tire manu- provide our dealers with solutions that facturers will have to master very soon — if will address the (needs) of the end user not already today — because you need today and also tomorrow. ■