Michelin is considering how to recover from the COVID-19 pandemic and will focus on more than just tires to secure its future.
Like most companies in the automotive industry, the French tire manufacturer was hit hard by the pandemic in 2020. Although it is expected to make a full recovery by 2022, it will look to create new sources of income.
“As we stay true to our DNA, the company profile will evolve significantly by 2030 and play a greater role in new, high-quality activities related to tire manufacturing and beyond,” said Florent Menegaux, Michelin CEO, in a statement.
According to Reuters, the company plans to grow its sales to 34 billion euros ($ 40.5 billion) by 2030, from 20.5 billion euros (24.4 billion US dollars) in 2020.
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Michelin expects the fastest growth from Symbio, a partnership with parts maker Faurecia that makes hydrogen fuel cell systems for cars, SUVs and trucks. Although Toyota, Honda, and Hyundai are the only ones making hydrogen vehicles right now, and they haven’t been as successful with buyers, the European Union, Japan, South Korea, and large oil companies are investing heavily in the technology. Michelin also plans to enter the new field of metal 3D printing for medical devices.
These efforts don’t mean the company will stop manufacturing tires, although it has some ideas on how to make it more profitable as well. In particular, the company plans to expand its core business by focusing on higher-margin tires and outsourcing production to lower-cost locations.