Top 5 tire makers on journeys of growth, sustainability

Michelin, again, is the world's largest tire maker.

Bridgestone follows at No. 2, while Goodyear and Continental A.G. took the third and fourth positions, respectively.

And that comes as no surprise because shuffling among the Top 5 tire makers is rare.

But then again, this isn't just any year.

Pirelli & C. S.p.A. leap-frogged Sumitomo Rubber Industries to reclaim the No. 5 spot in this year's ranking, returning to the position for the first time since 2015, when Sumitomo claimed the position.

Worth noting also is that Pirelli was one of nearly two dozen companies to climb the chart of the World's Top 75 tire makers this year. Moreover, three newcomers were added to the ranking this year—all of them from China.

In the weeks ahead, Rubber News will publish its full list of the globe's top 75 tire makers, along with more analysis of this year's ranking. For now, though, you can find all of the information at tirebusiness.com.

In the meantime, here's what you need to know about the world's five largest tire makers.

Michelin has held tight to the title of No. 1 tire maker since 2020 when its global tire sales eclipsed Bridgestone's, ending the Japanese tire maker's 11-year reign at the top of the chart.

This time around, Michelin posted 2023 tire sales of around $27.5 billion to claim that top spot. It leads No. 2 Bridgestone by about $2.1 billion.

Ultimately, it was an ambitious growth strategy that drove Michelin to the top of the charts in 2020 and it's the same ambition that has kept it there. Because more than five years later, Michelin is still growing.

And it's doing so around a vision it defines as "with, around and beyond tires."

Much of its more recent growth has been in the around and beyond tire spaces, and this plays out on our ranking as, year over year, the estimated percentage of revenue from tire sales has dropped gradually, going from 93.5 percent in 2021 to 90 percent this year. It is expected that the percentage will continue to drop as Michelin further emphasizes its growth in hose, belting, high-performance materials and other segments.

Michelin attributes this kind of change to its "win where it matters" strategy—a dedicated focus on high-value, in-demand products.

Driven by the "win where it matters" approach, Michelin also is right sizing its tire operations by working to build a balanced portfolio of products while managing its manufacturing footprint to best meet global demand and trends.

And woven into Michelin's growth vision is a pledge for greater sustainability. It's a pledge that the French tire maker defines by considering people, profit and planet in every decision it makes, saying all must benefit.

This pledge is playing out in a number of ways across Michelin's portfolio of more sustainable products through more sustainable materials and performance and in its operations.

Bridgestone looks a little bit different than it did just one year ago. Because the tire maker has restructured its management into two segments, Bridgestone West—which includes the Americas, Europe, the Middle East and Africa—and Bridgestone East, encompassing China, India and the Asia-Pacific region.

The aim of the newly aligned Bridgestone is to leverage best practices and streamline the organization. Bridgestone Americas Inc. CEO Paolo Ferrari is leading Bridgestone West, while maintaining his responsibilities at Bridgestone Americas.

The company posted global sales of around $25.4 billion to secure the No. 2. spot.

What's interesting about Bridgestone is that, unlike Michelin, more and more of its total sales are coming from tires. Markedly so. It's estimated that Bridgestone saw about 74 percent of its sales from tires in 2021. Today, about 83 percent of sales come from tires.

In North America, Bridgestone is adjusting to the market, growing in areas where demand is growing and/or consistent, and right-sizing in areas where demand is down. The latter is the case for agriculture tires and that has led the company to announce the cutback of production and jobs at its Des Moines, Iowa-based ag tire plant.

But Bridgestone is growing, too, and investing as it does. Perhaps the most prominent example of this effort is the $550 million investment in its Warren County, Tenn., truck/bus tire facility. The project, expected to be completed in 2026, will increase output and help ensure that the products coming out of the plant are more sustainable and new mobility-ready.

And you can bet that Bridgestone also is fully committed to greater sustainability. Its investments in and cultivation of guayule is proof of this.

But the Japanese tire maker's commitment doesn't end there. Bridgestone is willing to stretch its understanding of sustainability, conducting trials on big ideas with great potential. And no place is this more apparent than in auto racing.

As the NTT IndyCar Series' sole tire supplier, Bridgestone tests big ideas against some of racing's most grueling conditions. This year was no exception. Built into the more than 5,000 Firestone Firehawk IndyCar racing tires used in the May 26 running of the Indianapolis 500 were two monomers—bio-styrene and butadiene—sourced from waste residue of palm oil processing.

It's another big year for Goodyear, which held strong to the No. 3 spot after posting 2023 sales of $17.2 billion.

That's because the Akron-based tire maker has embarked on its Goodyear Forward plan, one that aims to streamline and optimize the company for growth down the line. And its doing that with its brand new CEO in place.

Early this year, Goodyear welcomed new CEO Mark Stewart, who came to the company from Stellantis N.V. in North America, where he served as the chief operating officer. He succeeded longtime CEO Rich Kramer.

Stewart stepped into the role knowing there were big changes on the horizon for the tire maker.

The Goodyear Forward plan, first introduced in 2023, was spurred by a letter from Elliott Investment Management L.P., one of the tire maker's largest shareholders, in which it shared its disappointment with Goodyear's poor stock performance and demanded changes.

The Goodyear Forward, by the end of 2025, should bring:

• cost reductions netting $1 billion annually;
• top line actions that result in $300 million annually;
• doubling of segment operating income margin to 10 percent; and
• Goodyear closer to an investment-grade rating through a strengthened financial profile, enhanced earnings, cash flow generation and $1.5 billion in debt reduction.

To achieve this, Goodyear looks to divest chemicals/synthetic rubber, off-the-road tire and Dunlop brand businesses.

Already, the Akron tire maker has found a buyer for its OTR business in Yokohama, which intends to purchase the business for around $905 million.

Goodyear also is addressing its work force, saying earlier this year it would move 175 positions to its new location in Costa Rica. At the same time, the tire maker said it plans to eliminate some jobs.

When it comes to North America, Continental is deepening its roots. Earlier this year, Continental Tire the Americas L.L.C. christened a new headquarters, strengthening its presence in the U.S., and in South Carolina particularly.

South Carolina also is home to the company's brand new retread facility, dubbed Continental Retread Solutions Development Center. Continental believes it can capture a larger share of the retreading market—one dominated by Bridgestone/Bandag—and the new facility is a key component to that aim.

Globally, Continental is re-envisioning its structure, considering a spinoff of its automotive business. A decision on the restructuring is expected in the fall.

If approved, the automotive business would become a separate entity, but the tire and ContiTech businesses would remain under the Continental umbrella.

Such a move would help to put tires more at the forefront of what Continental does. As of now, the tire segment is only a small fraction of the automotive giant's operations. It's estimated that just 28 percent of Continental's total sales come from tires.

This year, Pirelli captured that No. 5 spot, taking it from Sumitomo after posting $7.18 billion in global sales last year. Sumitomo's sales came in at $7.16 billion.

In North America, Pirelli is making its mark and it's doing so, in part, by winning OE fitments.

But growth in North America—one of the most important regions globally—also means meeting consumers (and the market) where they are. To do this, Pirelli is focused on designing the kinds of tires that consumers say they want. Those with low rolling resistance, excellent treadwear and optimal performance in all weather conditions.

Yes, Pirelli intends to offer all of that and do so more sustainably. The tire maker is proud to say that its Rome, Ga., plant was the first to produce tires that were certified by Forest Stewardship Council.

It is worth noting that Pirelli just eked out Sumitomo for the No. 5. spot, meaning simply: No. 5 is up for grabs.

And that is especially true when you consider that companies like Hankook (No. 7 with $6.64 billion) and Yokohama (No. 8 at $6.22) are investing for growth.

And Yokohama, in particular, is a company to watch.

Earlier this year, the Japanese tire maker announced its plans to purchase Goodyear's OTR business for around $905 million. This purchase, should it go through as planned, would be the second major OTR addition to the Yokohama family in recent years.

Yokohama acquired Sweden's Trelleborg's Wheel Systems from Trelleborg A.B. in 2023 for $2.3 billion. It was a move that doubled the size of the company's off-highway tire business.

Bear in mind that Hankook also aspires to crack the Top 5, telling Tire Business last year that its growth and investments in the North American market are playing key roles in helping it realize that aim.