Michelin 7% Price Increase Effective 3/16/20

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I've bought 3 sets(4) of Michelin's, and I just cannot get four tires to wear evenly. I've done all sorts of tire rotation shenanigans. One tire goes bald or gets nails and goes out of balance....Just that ONE tire. I ride my tires slightly past the wear bars, Illegally worn.
 
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Wow, lots of hate for the leading tire company without mention that every other tire company is raising prices incrementally at the same time. They spend a lot on r&d and should be commended for their approach to wet weather traction...when you need it most. Show me the results. PS4S, Crossclimate+, Xi3, LTX M/S, etc. have shown their leadership. Ask any tire dealer about the most consistent tire quality and Michelin will come up first. Bridgestone, Yokohama, are a close second and the rest are just trying to capture a piece of the market. Hankook shows the most promise and has just reached tier 1 status.
 
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Quote
Michelin Remains Strong With A 7.5% Free Cash Flow Yield And 3.6% Dividend Yield
Quote
Summary Michelin's volumes are down, but revenue and cash flows are up. H2 will see a 20% capex reduction compared to H1, and this, combined with working capital changes, should quickly reduce the net debt by year's end. The diversification and vertical integration is paying off as Michelin's overall performance remains very satisfying. The company remains attractive for both value investors and dividend investors.
...They do not even have a "fleet" of Blimps, I suspect "activist investors" forcing the company to "perform" on whatever. Who knows if the CEO will be well compensated.
 
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wdn

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Factor in the cost of $60-80 to install a set of tires. That is a fixed cost whether you buy cheap or expensive tires, but cheap tires do not last as long, so you are paying those install fees a lot more often. People who will not pay $80 more per set for better quality tires still wind up paying $80 installation fees sooner, on another set of middling tires.
 

M56959

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Please stay on topic, removed posts for political commentary. Anymore and topic will be locked.
 
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Originally Posted by geeman789
The number 1 criteria consumers think about for tires is PRICE. Michelin is going to make 7 % more gross revenue, but lose 10 % + when more customers go, how much ... ??? Is there anything cheaper ? Yes. Yes there is ...
There is always room for a high end/price irrelevant retailer or two in every market and I think Micheiln is that. They'll do fine.
 

OVERKILL

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Originally Posted by BISCUT
Originally Posted by Mr Nice
Quality = $$$
If it worked that way for you I'm glad. Never did for me. Not a company I'll ever pay for again. I've done well with BF, Conti, and Vaderstein.
Originally Posted by csandste
Always had better luck with Uniroyal and BFG for some reason. Never have believed you get what you pay for.
Michelin owns BFG.
 
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I've had good and bad experiences with Michelin, but they have been decent for the most part - especially with my local distributor. I had Michelin Primacy MXV4's (225/60R16 98H) tires on the Grand Marquis, which were also the factory tires. They were pretty decent, but as they aged over time, they started to dry rot. The best Michelin tires I ever had were the Latitude Cross (265/70R16 112H) on the Mitsubishi Pajero. Great traction (wet, dry and off-road), long tread life, great comfort and still quiet despute the tread pattern. I had three sets of those, but unfortunately the last time I was due for tires, they were discontinued and I had to go with Primacy SUV's. I have Michelin Latitude Sport 3's (255/60R17 106V) on the GMC Envoy, which have been pretty decent in terms of traction (wet and dry), road comfort and noise. They got 18,760 miles on them with lots of tread left. Only downside is they are a softer compound than the Pirelli Scorpion Verde's they replaced.
 
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Originally Posted by LotI
Wow, lots of hate for the leading tire company without mention that every other tire company is raising prices incrementally at the same time. ……..
I wonder why the first post? Was it to point out the price increase, while - as you are pointing out - others are also increasing prices? If so, then this thread is just a case of piling on.
 
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Originally Posted by OVERKILL
Originally Posted by BISCUT
Originally Posted by Mr Nice
Quality = $$$
If it worked that way for you I'm glad. Never did for me. Not a company I'll ever pay for again. I've done well with BF, Conti, and Vaderstein.
Originally Posted by csandste
Always had better luck with Uniroyal and BFG for some reason. Never have believed you get what you pay for.
Michelin owns BFG.
And Uniroyal. But I think that might have been the point 'csandste' was making.
 
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OVERKILL

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Originally Posted by 02SE
Originally Posted by OVERKILL
Originally Posted by BISCUT
Originally Posted by Mr Nice
Quality = $$$
If it worked that way for you I'm glad. Never did for me. Not a company I'll ever pay for again. I've done well with BF, Conti, and Vaderstein.
Originally Posted by csandste
Always had better luck with Uniroyal and BFG for some reason. Never have believed you get what you pay for.
Michelin owns BFG.
And Uniroyal. But I think that might have been the point 'csandste' was making.
Perhaps, definitely another way of reading his comment. As CapriRacer noted before however, Michelin has some very specific technologies that they do not pass down to their "lesser" brands.
 
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Might boil down to what kind of tire you're buying. I'm using Michelin Pilot Sport A/S 3+ which are about $185 a tire at Costco. I think that's what I paid a few years ago. But now instead of their $70 plus free installation, they're just offering $40 off installation so it's a bit more money. I guess I'll see what they charge after the price increase goes into effect. If they've raised their prices every year, maybe Costco has been eating it or the tire prices are just fluctuating up and down. Tire rack sells them for the same price but no $70 instant rebate. But free shipping. Only 2 year road hazard instead of 5 years with Costco.
 
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Originally Posted by SubLGT
What tire manufacturer will be lowering prices in 2020?
Probably all of them, as deflation sets in.
 
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Originally Posted by Mr Nice
Deflation as in the economy or tire pressure ?
Both, GM is working on a "airless" tire.
 
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I have no problem with those who don't like the company, had a bad experience with their products, or just don't see value, and express that here. I do mind, as happens sometimes, being thrashed for even mentioning the brand. I'm also not too keen on vague discussions like "LTX" as if that is one model of tire (it's not). It's a very competitive marketplace, and I agree most buyers are price sensitive. It is also a very informed market, more than ever before. If Michelin manages to survive, or even thrive, it must be doing something right (besides advertising).
 
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Would love to know the economics of the 7%. Increase because the cost of materials, ok, well which materials, all of them? three to four different materials? 7% is a lot, how much of the 7% is profit, its all smoke and mirrors.
 
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