Background

In 1889 two brothers, Andre and Edouard Michelin, embarked one of the great human and industrial adventures of our times: one that shaped and continues to drive progress in modern means of transport through constant innovation.

From the invention of radial tires to that of Pax System, and from the first gastronomic guide to the steel wheel, Michelin has played an active role at every stage of the automotive adventure.

World Tire Number 1 with 19.4 % of the market (Tire Business August 05).
Michelin relies on its global industrial presence backed by a sales network in some 170 countries. Michelin, World Number 1 Tire Manufacturer. In 2005, Europe represented 49% of sales, North America 36% and Asia, South America and the Middle-East/Africa Zone 15%.

The replacement tire market, in the Passenger Car-Light Truck and the Truck markets, represents some 70% of our sales in volumes. Accordingly, before being a equipment supplier for vehicle manufacturers, Michelin is primarily a player on the consumer market for passenger cars and motorcycles and on the professional consumer goods market for light and heavy utility vehicles.

Strategy

A global player present on all tire markets, Michelin intends to remain world No.1 in tires and mobility assistance through a strategy built around promoting "better mobility" and, on the strength of the outstanding quality of its brands, maintain all-round excellence in innovation, products and services.

The Group takes advantage of its strong local presence to adapt to the specific features of the markets. It pursues a strategy of sustained organic growth, backed by selective acquisitions and partnerships to penetrate new markets.

Michelin's objective is to perform well over the long term by growing faster than the market on the attractive segments that it has chosen, developing its positions in high-potential regions, reducing its overheads and increasing its flexibility and proactivity.

Satisfying customers
Offering our customers ever greater quality and performance: Michelin's development has been founded on innovation since it was first created.

Optimizing performance
Michelin relies on its most technical products and high added-value services to achieve a fair return on the quality and innovation that characterize its offers.

Mobilizing expertise
Michelin employs nearly 125,000 people across all continents, including 4,861 who joined the Group in 2003.

Contributing to sustainable mobility
Taking advantage of its technological lead, Michelin places sustainable mobility at the core of its growth strategy.

Corporate governance

For over 140 years, Michelin has operated as a specific legal entity called the Partnership by Shares. Mr Michel Rollier, Managing Partner, runs the Company.

Partnership by shares
This corporate structure has been, and remains, an ideal framework for the development of a stable base of highly committed managers in pursuit of long-term strategies.

Management and supervisory bodies
The Managing Partners run the Company and report to  the Annual Shareholders Meeting. They prepare the Company accounts and recommend the appropriation of profit/loss for the financial year.

The Shenyang Company

Michelin and Shenyang Government reached an agreement and established Michelin Shenyang Tire Company, Ltd. at the end of 1995. It put in an investment of US$150 million and constructed 4 joint venture plants in collaboration with Shenyang Tire General  Factory. The four joint venture enterprises have now combined into one company, named Michelin Shenyang Tire Company, Ltd (MSTC), which will be a wholly owned and fully independent company shortly.