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Bridgestone low prices give it the jump on Michelin
BRIDGESTONE Corp, the world's largest tire maker, might trail Michelin & Cie in customer satisfaction in every category surveyed by market researcher JD Power & Associates.
But Paul Ciccoretti doesn't care. The 46-year-old owner of a glass-coating company visited Mack Alger Firestone in Michigan this week to buy tires for his 2007 General Motors Corp Sierra pickup. He chose Firestone, Bridgestone's United States brand, over Michelin because its prices were lower.
The French company has 'a great line of tires, but it gets a little pricey on the truck,' he told Bloomberg News. 'To be able to save US$150 on a set of tires really made it easier to get into Firestones.'
As the US economy cools, Michelin's higher pricing is helping Bridgestone. The Japanese maker's lead in sales and stock performance may widen as costlier gasoline and weakening consumer confidence spur motorists to choose cheaper tires.
Michelin, the world's second-largest tire maker, is scrapping plans to build a US$740-million plant in Mexico, it said on Wednesday in a statement distributed by the PRL Newswire. It cited falling demand in North America. 'In this market environment, the higher quality doesn't help Michelin,' said Paul Heaton of Pyrford International Ltd in London. 'I'd like a cheaper tire.'
Bridgestone's operating profit rose 31 percent last year on a 13-percent gain in sales, according to Bloomberg News. At Michelin, operating earnings increased 18 percent as revenue grew 3 percent.
For three straight years, Michelin has topped Bridgestone in US surveys by JD Power.
'We don't think our tires are inferior to Michelin's at all,' said Fusamaro Iijima, a spokesman for Bridgestone. Bridgestone has declined 6.4 percent in Tokyo trading this year, less than Michelin's 43-percent drop in Paris. Michelin rose 96 cents, or 2.2 percent, to 44.5 euros (US$65.62) yesterday.
The French maker's tires are as much as 15 percent more expensive than Bridgestone products, said Olivier Vialle, Michelin's European marketing director for passenger-car and light-truck tires.
The gap between the two makes is set to widen next month. Michelin is raising North American prices as much as 12 percent and Bridgestone plans a 10-percent boost.
But Paul Ciccoretti doesn't care. The 46-year-old owner of a glass-coating company visited Mack Alger Firestone in Michigan this week to buy tires for his 2007 General Motors Corp Sierra pickup. He chose Firestone, Bridgestone's United States brand, over Michelin because its prices were lower.
The French company has 'a great line of tires, but it gets a little pricey on the truck,' he told Bloomberg News. 'To be able to save US$150 on a set of tires really made it easier to get into Firestones.'
As the US economy cools, Michelin's higher pricing is helping Bridgestone. The Japanese maker's lead in sales and stock performance may widen as costlier gasoline and weakening consumer confidence spur motorists to choose cheaper tires.
Michelin, the world's second-largest tire maker, is scrapping plans to build a US$740-million plant in Mexico, it said on Wednesday in a statement distributed by the PRL Newswire. It cited falling demand in North America. 'In this market environment, the higher quality doesn't help Michelin,' said Paul Heaton of Pyrford International Ltd in London. 'I'd like a cheaper tire.'
Bridgestone's operating profit rose 31 percent last year on a 13-percent gain in sales, according to Bloomberg News. At Michelin, operating earnings increased 18 percent as revenue grew 3 percent.
For three straight years, Michelin has topped Bridgestone in US surveys by JD Power.
'We don't think our tires are inferior to Michelin's at all,' said Fusamaro Iijima, a spokesman for Bridgestone. Bridgestone has declined 6.4 percent in Tokyo trading this year, less than Michelin's 43-percent drop in Paris. Michelin rose 96 cents, or 2.2 percent, to 44.5 euros (US$65.62) yesterday.
The French maker's tires are as much as 15 percent more expensive than Bridgestone products, said Olivier Vialle, Michelin's European marketing director for passenger-car and light-truck tires.
The gap between the two makes is set to widen next month. Michelin is raising North American prices as much as 12 percent and Bridgestone plans a 10-percent boost.
