Not only are automakers struggling to cope with increasing prices on raw materials; suppliers, like Michelin, say that they are having to find ways around the challenging situation.
The tire manufacturer’s chief executive designate, who could soon take over the company, told shareholders that, “we have never experienced such strong pressure.”
Jean-Dominique Senard was nominated to become Michelin’s new CEO at a shareholder meeting at the company’s headquarters in Clermont-Ferrand, France, earlier today.
“This year, raw material rises will have a 1.8 billion euro impact on our accounts,” Senard said.
Michelin has already increased consumer pricing on truck tires as a result of the additional cost of acquiring raw rubber. Passenger car tire pricing is likely to follow, which will undoubtedly help raise list prices for new cars.
References
1.’Michelin under raw…’ view
No comments:
Post a Comment