The global economic system enters a radical change period. This is the problem for multinational ones with border border supply chains. However, Michelin’s CEO Florent Menegaux claims that the company develops during the last ten years, which is dominated by turbulent times.
“Before the world Covid and President Trump was different before chosen in 2016,” Menegaux said. “This is around the world in 175. We are suddenly approaching in the relations between 175 countries in the world, especially in relations between our countries.
Changed the management of the staff of Covenian companies. “We thought that the action was natural and suddenly more than half of the world locked,” said Menegaux. “Then we had the great inflation that we intended to supply chains and supply chains due to sharply rising costs.
A new strategy for new chaos
“The question was whether our strategy in this new world was adequate,” Menegaux said. “Michel has developed better agility.”
A road in a chaotic environment of Michelin is the diversification of the work in which different materials are connected to each other to form a single substance. Tires have been composition for decades, so this business uses the existing experience of Pivot the company. Michelin now prepares a rubberized piece for giant conveyor belts and inflatable boats to use flexible pipes, timing belts, mining devices.
175
Number of countries where Michel works
The company even produces small composite components designed to surgically apply surgical human organs to prevent damage. Currently, composites only make up 5% of Michelin’s work, but the goal is to reach 20% of the rate by 2030. The flagship composite project is Michelin’s offer to introduce airless tires for NASA Artemis Mission Lunar Terrain. “It will be a great benefit for our daily tires to develop this technology and use on earth,” Menegaux said.
Global competition has been built for many years and does not have a sign in the tire work with new tariff regimes. China is now the most open opponent, but the threat is not something new. “In the last 15 years, we competed a lot with China, and this is strengthening us if this is the acceptable rules of the game,” Menegaux said. “We have made many real improvements in our technology because of the pressure from China. After 20 years, we have seen the manufacturer of more than 100 tire manufacturers from China. Thus, there is no more power, enough technology.”
“The question was whether our strategy in this new world was adequate. Michelin has developed better agility.”
Michelin’s CEO, Florent Tegaux
Michelin, the production footprint for years was reconstructed to deal with this changing market conditions. “There were many plants for historical reasons,” says Menegaux. “We are able to export our scattered traces in Europe because we were able to export it from Europe. Now the competitive environment for us is not adequate for us, so we need to scare our footsteps to be in Europe.”
“We reconsidered how the global supply chain should be done,” Menegaux. “Now we had a local vision for a while. For example, if you do not have to increase something critical for your production from the world, they grow in a group of 200 kilometers north or south. But are cheaper?”
Tariffs do not end globalization, just change your own nature
The existing tariff wars are designed to combat the balance between the costs of production in different countries, but Menegaux accounts will not prevent the world in the inertness of globalization. “We are already globalized.”
“However, the path of this globalization can be developed. If you are also incorrect, if you are incorrect, and the environment is very good for the environment, because millions of people were removed from poverty.”
Micheli’s localization and diversification strategies may be less sensitive to US tariff wars than some global companies. “About 70% of what we sell in the United States is produced in the United States,” Menegaux said. “Tariffs will affect, but one can think more than one.” Suddenly, these rules will be ineffective for these three countries and citizens are inflation. Shortly, Michel’s prices will have to increase. “Our clients will have to pay more or will pass to many cheaper offers than other brands. But we were better placed than most of our competitors.”
However, the globalization is not over. “It’s no longer chaos,” says Menegaux. “This is what this is now like this, because we have to match the EU. Build a new vision. We just think it is a giant supermarket. This is not enough.”
Like Europe, Chinese, like America, like America, should play a central role in the world. What a shortage we are in Europe is currently an image …
Florent Tegaux
Composites Business is probably the most radical turn towards Michelin’s greater agility and a longer plan. “We define a new category of business not available with composites before,” Menegaux says. However, it is part of a turn toward more comfort. “It’s like cooking well,” Menegaux-O is French. “Sometimes you need more salt, sometimes you need a little more sugar. It’s never the same. Based on certain conditions, it is the issue of adapting to the immediate priority of the moment, based on certain conditions.
