Automotive Industry
Industry: Email Alert RSS FeedPirelli Lays Tracks In the U.S
Automotive Industries, May, 2001 by Don Sherman
New plant will supply 2004 Taurus from Georgia
Pirelli Tire has quietly laid foundations to manufacture tires in the U.S., with an eye toward OEM applications. At the recent launch of Pirelli's new P6 and P7 radial lines in Barcelona, Spain, Paul Hembery -- until recently product development director for the company's U.S. original equipment business, now the company's group motorsports director--outlined Pirelli's near-term plans.
Q: When did Pirelli decide to manufacture tires in America under its own brand name?
A: We began working on this 18 months ago. We felt that success in America depended on working with a key customer. We chose Ford because that's our largest customer in Europe. Ford has many brands that could use Pirelli tires. And we've worked well with Ford in the past.
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Q: What is the first application of Pirelli tires to a Ford product?
A: We'll begin with the 2003 model year Lincoln Town Car, Ford Crown Victoria, and Mercury Grand Marquis cars destined for export to markets in the Middle East (Gulf States). The 17-inch speed-rated Pirelli P6 all-season radials will initially be manufactured in Europe, but we'll eventually source them from either South America or the new factory under construction in Rome, Ga.
Q: Why a new factory?
A: Ford required that we have local production, so we committed to the new plant. It will be ready to provide tires for the 2004 Taurus. We have a contract to supply 18-inch performance tires for that vehicle and cooperative development is underway between Ford and Pirelli engineers.
Q: How does Pirelli's new Modular Integrated Robotized System (MIRS; see story on www.ai-online.com) factor into these plans?
A: The Rome plant is a dedicated MIRS facility. This system is highly flexible, so we can begin with any capacity we choose, then add lines as we're successful in the U.S. Instead of committing to a four-to-five million-tires-per-year facility, we can start with just one line and build up to 30 or 40 manufacturing lines over time. The quality is very high and the operation can be profitable from the start, partly because it takes up very little space and requires 40 to 50 percent less labor than conventional tire manufacturing methods.
Q: Is Pirelli interested in supplying other domestic and offshore manufacturers building cars and trucks in America?
A: The Rome facility could be expanded to service any of our customers. We have good partners in Mercedes and BMW, both producing in the U.S. Nor would I rule out working with GM or Daimler-Chrysler. Our intention is to start with one large customer: Ford. After we achieve success, we'll open up the business to other manufacturers.
Q: What about the Asian manufacturers who have been very successful building vehicles in America? Doesn't Pirelli supply Lexus in Europe?
A: A very high potential exists, but for the time being we're focusing on our start-up. I wouldn't rule out the Japanese makers since we've worked with them in the past, but for the time being, we're concentrating on the American-based Big 3.
Q: What engineering commitments has Pirelli made for its American operations?
A: Our technical team is currently studying MIRS in Milan so they'll be able to use the process when it comes on line in the U.S. We want to make sure we have the same technical competencies in both Europe and America so the local team can support the homologation process independently of Milan.
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