French tyre maker Michelin is reportedly interested, depending on the possibilities, in taking part in the consolidation of the industry.
Marc Henry, Chief Financial Officer at Michelin Group, denied the claims saying the company plans to hold onto its status as a ‘societe en commandite par actions’, which protects it from takeover attempts as it concentrates power in the hands of the company’s founding family.
Henry has not shut down the idea entirely, adding in light of the aftermath of the GFC, he has concerns Michelin will be hit hard hard this year due to the strong rise in natural rubber prices.
“Michelin has been forced to raise prices and reduce costs. It will not be easy. We will be forced to make extra efforts,” Henry says.
Despite higher investment in growth markets such as China, India and Brazil, Henry is optimistic Michelin will achieve positive cash flow in 2010.