Michelin to tie OE tyre prices to oil prices

Paris -- Group Michelin, citing soaring oil prices, is launching a new pricing system for its original equipment customers worldwide based on a scale indexed to changes in oil prices.

The change, due to take effect from 1 Apri, will affect passenger and light truck tyres.

Michelin said the system “will clearly distinguish the effects of petroleum-based raw materials from the intrinsic value of Michelin tyres” and called it a “pledge of transparency and clarity in Michelin's relations with auto makers.”

In announcing the change, Micheline noted that petroleum-based products account for about 60 percent of the cost of a passenger car or light truck tyre.

From Tire Business (A Crain publication)

Press release fro Michelin