In 2025, our environment will have significantly changed and we already have a few certainties to hand: a mobility market enjoying strong growth, fast urbanization with all the associated challenges, strong environmental pressures expressed by increasingly restrictive regulations, societal pressures which will make the company an increasingly solicited benchmark, acceleration of the digital revolution which may lead to competition we cannot even imagine today, increasingly volatile, complex and uncertain markets, rapidly changing because of accelerating knowledge, in turn driven by new technologies.
Michelin is in a strong position to face these challenges. Everything is on our side for success, if we adapt our behavior today to this new order, without losing our roots in our respectful values.
I would therefore like to share with you my vision for tomorrow’s Michelin.
Faced with this future reality in which we are already standing, we must be clear about who we are, why we are working together and what our strategy is, more than ever before. It is our key purpose “to find a better way forward for everyone” that unites us.
That purpose gives meaning to our actions every day. We believe in mobility as a vector for progress, in innovation that excites us and sets us apart, in quality without compromise for our products and services, in our capacity to give each of us the opportunity to express our talents. Finally, we want to give our purpose substance as the unrivaled leader of sustainable mobility.
We have set ourselves 6 major ambitions, creating a concrete roadmap with precise objectives for 2020:
- Strengthen customer satisfaction
- Encourage employee achievement
- Provide solid financial performance
- Innovate to reinforce the leadership of our products and services
- Become a benchmark as a responsible company
- Contribute to the development of local communities and sustainable mobility
Our strategy stems from these ambitions. Today, it is being rolled out through the four major pillars of our business and four major transformation initiatives which guide our Group’s development.
1 - Availability of the most suitable tires for our customers
By 2020, we want to increase tire sales by 20%, offering innovative and high-performing products from the first to the last mile.
Michelin is always in phase with its time and one fact has not changed in 125 years: our obsession for innovating tires to offer even better, long-lasting performance. Using our knowledge of how tires are used, we deploy our capacity for innovation to create tires that combine performances previously considered incompatible, always meeting the finer details of customer expectations.
The many market launches of tires in all product lines over the last 12 months serve as examples: MICHELIN CrossClimate+, a winter-certified summer tire, MICHELIN X® LINE™ ENERGY™ scoring AAA in roll resistance without compromising its longevity, MICHELIN Power RS with better grip on dry and wet roads, MICHELIN XDR3 adapted to all mining sites, MICHELIN ROADBIB as comfortable on the roads as it is in the fields…
Our unfailing commitment to innovation (€720 million in R&D investments and over 400 patents filed in 2016) and our teams’ ability to quickly launch exciting breakaway products mean we have the resources to match our ambitions.
To make the difference, today we would like to literally go further, enshrining performance in our tires for the long-term. Tests have proven that tires are not equal when worn and a worn high-quality tire can perform better than a new tire. By designing tires that provide a very high level of performance, in particular in terms of safety, right up to the legal wear limit, we are advocating a virtuous approach which embraces the model of a circular economy. Similarly, it is a solution to environmental challenges and the economic expectations of our customers.
2 - Services and solutions developed around tires to improve the efficiency of mobility
By 2020, we want to double sales of our services and solutions.
Service has been part of the Group’s DNA for 125 years and we are planning to make the most of new opportunities in the digital revolution. Whether it is fleet services, whatever the type of vehicle or our retreading business, we provide our professional customers tools to improve their tire management. They have better security and safety, reduced costs and improve their own environmental performance.
We are making the best of digital technology and the possibilities offered by smart tires to better manage fleets with, for example, our Effitire™, Effifuel™, and Effitrailer™ solutions by Michelin and MICHELIN TIRE CARE for heavy trucks. Tomorrow, vehicle data analysis will help us provide services going beyond tires.
Today, we are rolling out all of our services on a growing number of markets, particularly in Asia. Our acquisition policy, like the integration of SASCAR in Brazil or NexTraq in the United States, gives us access to new markets like Touring-Light Truck fleets. This represents an important growth lever for the Group.
3 - All activities which will give our customers unique mobility experiences
By 2020, we want to triple our sales in these activities, privileging the consumer experience.
Mobility experiences we offer are built on an exceptional legacy and capital: our customers have always relied on our maps and guides before, during and after their journeys, with innovative services.
By developing guides all over the world (5 new Michelin guides in Asia and North America in 2016 alone) and using the practical and modern possibilities provided by digital technology, we are reaching a broader public.
We are also adding to our service offer. Through the acquisition of Bookatable and Restaurantès, we are more than ever the European leader in online restaurant reservations.
We want to become a retailer of mobility experiences!
Beyond MICHELIN’s brand awareness, these services represent a fabulous opportunity for privileged contact with our customers. Our ambition is to use them to offer unique experiences, facilitating and organizing our customers’ travel.
4 - Our expertise in “ high-tech material”, particularly elastomers
We will be proactive to confirm our technological leadership. We will make it a real growth lever by putting our innovative materials at the service of the sustainable mobility industry.
In parallel with our huge expertise in tire architecture, our expertise in materials is today mainly used for tires: its what makes our products different.
All around the world, our teams continue to explore possibilities for all components used to make tires: synthetic and natural rubbers, cables, fabrics and molds. The development of many external partnerships means we can stay at the cutting-edge of innovation whilst improving our sales figures.
Tomorrow, we want to go even further by providing high-tech materials to other mobility industry operators. The best illustration of this is the creation of the AddUp joint venture with the Fives group in 2016. It illustrates our ability to manage a highly technological industrial process, the additive manufacture of 3D metal, already providing the first machine model.
Michelin is changing, but will be faithful to its key purpose and values
To ensure a powerful launch of our strategy, we must accept changes in our operational methods and quickly adapt our behavior whilst capitalizing on our key purpose.
This is the challenge of our four transformation initiatives, indivisible and inseparable, that we launched at the end of 2015. They have already created a new dynamic in the Group and are having a visible impact.
Our 4 transformation initiatives:
- Put the customer at the heart of our concerns
- Make the most of the digital revolution
- Simplify our organizations and our processes
- Finally, make everyone responsible
The launch of our strategy and the transformation of our Group cannot neglect the unchanging values of our great Company. Respect for the men and women at Michelin is the first of these values, and it represents the cement which binds us together and ensures our cohesion.