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March 21, 2008 02:00 AM

Michelin OE tire pricing will link to oil prices

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    PARIS (March 21, 2008) — Michelin is launching a new pricing system April 1 for its original equipment customers worldwide based on a scale indexed to changes in oil prices.

    The change will affect passenger and light truck tires.

    Michelin said the system "will clearly distinguish the effects of petroleum-based raw materials from the intrinsic value of Michelin tires" and called it a "pledge of transparency and clarity in Michelin's relations with auto makers."

    Michelin said petroleum-based products account for about 60 percent of the cost of a passenger car or light truck tire.

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