Michelin CFO: Cautious on Outlook as Inflation Bites

The Michelin CFO, Eve Chapeau, discusses the company's financial outlook for 2023, highlighting increased costs due to labor, logistics, energy, and raw materials. She explains the cautious guidance given market uncertainties, particularly regarding China's recovery and energy prices. Transport challenges persist due to driver shortages and geopolitical issues. Michelin's pricing strategy aims to counter inflation, with no further price increases planned. The company anticipates a slight rebound in car production but not to pre-pandemic levels.

What is one of the main uncertainties affecting Michelin's 2023 outlook?

• The introduction of electric vehicles

• The demand for luxury car tires

• The recovery speed of China's market post-COVID-19

• The availability of new tire designs

What has contributed to the shortage of drivers in Europe?

• The war in Ukraine

• Higher fuel prices

• Increased demand for electric vehicles

• New regulations on driver working hours

What factor is NOT mentioned as influencing Michelin's pricing strategy?

• Shipping costs

• Consumer demand for premium tires

• Raw material costs

• Energy price fluctuations

How does Michelin view the demand for their tires?

• As a seasonal purchase

• As a high-frequency purchase

• As a need-based product

• As a luxury purchase

What is the expected trend for car production according to Michelin?

• A decline due to new environmental regulations

• A slight rebound in original equipment markets

• A return to pre-COVID-19 levels

• A significant increase in electric vehicle production

What percentage of Michelin's global sales is represented by original equipment?

• 50%

• 75%

• 25%

• 10%

What has been the impact of semiconductor shortages on car production?

• Production staying below pre-pandemic levels

• No impact on production

• Increased production levels

• A shift to manual vehicles