LONDON (Nov. 9, 2011) — Pirelli & C. S.p.A. intends to “fast forward” its strategy to become the world's leading premium tire maker, Chairman Marco Tronchetti Provera told the European financial community today at a gathering in London.
By 2015, Mr. Tronchetti Provera said, Pirelli expects to derive 80 percent of its revenue in Europe from sales in the firm's premium segments, from motorcycle to medium truck/bus tires.
The company expects the proportion of tires sold to the OE channel to fall to 20 percent from 25 percent, although it intends to continue with premium car makers, both for the prestige and to understand what the car makers need over time.
These and other measures — including capital investments of nearly $3 billion through 2015 — will help push profitability up measurbly, the chairman said. The consolidated pre-tax operating margin should nearly double to 16 percent by 2015, he said.
In particular the company said it expects to win 20 percent of the Russian tire market when the joint ventures with Russian Technologies are closed. In the Russian market, Pirelli expects to increase significantly its penetration in the winter tire segment, addressing the central European and Nordic regions.
The ambitious capital spending program will add 32 million units of annual capacity, the company said, including 8 million units in Russia alone.