The Public Investment Fund (PIF) and Pirelli Tyre formed a joint venture (JV) agreement to construct a tyre manufacturing facility in Saudi Arabia. The new JV will be majority-owned by PIF, holding a 75 percent stake, while Pirelli will have the remaining 25 percent and serve as a crucial technology partner, offering technical and commercial expertise to support the project’s development.

Production at the plant is slated to commence in 2026. The JV will focus on producing high-quality tyres for passenger vehicles under the Pirelli brand. Additionally, it will introduce a new local brand to cater to the domestic and regional markets. The total investment in this venture is estimated at around $550 million. Pirelli anticipates that the project will have a neutral impact on the company’s deleveraging goals through 2025.

Saudi Arabia aims to emerge as a global automotive manufacturing hub by 2030. PIF has played a pivotal role in establishing a world-class automobile sector within the country, driving transformation and fortifying manufacturing capabilities, infrastructure, and supply chains domestically and internationally. Noteworthy investments include the recent landmark $500 million joint venture between PIF and Hyundai Motor Company to establish an advanced automotive manufacturing plant in Saudi Arabia. Additionally, the launch of Tasaru, the National Automotive and Mobility Investment Company, focuses on localising automotive supply chains and manufacturing capabilities.

PIF has also made significant strides in the future of mobility, including establishing Ceer, Saudi Arabia’s inaugural national electric vehicle brand, and investments in Lucid Motors, which recently inaugurated its first international manufacturing plant in Saudi Arabia.

As a leading global tyre manufacturer, Pirelli will contribute technical support and expertise in the design, development, and operation of the plant. Through this JV, PIF and Pirelli are dedicated to creating a national and regional powerhouse that localises manufacturing capabilities for a crucial segment in the automotive industry, while facilitating upstream and downstream activities across the value chain.

The plant is projected to achieve an annual production capacity of 3.5 million units, yielding additional economic benefits and embracing a commitment to environmental sustainability. Furthermore, the JV will be a pivotal anchor for attracting further investment to Saudi Arabia.

Aligned with its local-for-local strategy, Pirelli, through the JV, is set to become the first tier 1 tyre maker to source production in Saudi Arabia directly.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “Through this Joint Venture with Pirelli, PIF is building production capabilities in the automotive and mobility value chain and enhance opportunities for private sector contribution. This collaboration marks another pivotal milestone in our journey to diversify the economy, enhance sustainability and localise manufacturing capabilities in Saudi Arabia”.

Marco Tronchetti Provera, Executive Vice Chairman of Pirelli, said: “Accessing local production in Saudi Arabia, one of the most promising markets today, in line with our positioning in High Value and electric, represents a great opportunity for Pirelli. Capturing it alongside a partner like PIF with its plans to enable the automotive sector.”

 

A decade after pioneering the first winter-approved summer tyre, Michelin pushes boundaries again with its groundbreaking MICHELIN CrossClimate 3 Sport. Designed specifically for high-performance sports cars, this innovative tyre merges the dynamic handling of summer sport tyres with certified winter capability – a first for the market.

Engineered for powerful gas and electric vehicles, the CrossClimate 3 Sport delivers year-round confidence with exceptional wet grip (rated ‘A’ on the EU label) and durability. Its advanced materials and motorsport-derived technologies achieve what was once deemed impossible: combining summer tyre responsiveness with Three Peak Mountain Snowflake (3PMSF) winter certification.

Available since 1 July in 29 sizes (205/40R18 to 315/35R20), with 30 additional variants coming in 2026, the tyre has already secured its first OEM partnership. The new Alpine A390 will feature a custom A39-marked version, optimised for the model’s sporty agility in 245/45 R20 sizing. Alpine selected the CrossClimate 3 Sport from three contenders, valuing its all-season precision and winter-ready 3PMSF performance.

Industry recognition followed swiftly, with Michelin winning the 2025 ‘Ze Award for Technological Innovation’ on 3 July. Judged by automotive experts and journalists, the accolade underscores Michelin’s leadership in the booming all-season segment, now representing 37 percent of the market. By redefining performance boundaries, the CrossClimate 3 Sport reaffirms Michelin’s commitment to innovation that meets evolving driver needs.

Serge Lafon Director of the Original Equipment Business Line, said, “When designing this tyre for Alpine, we paid close attention to the vehicle’s specific characteristics. Developed for the largest and most powerful Alpine ever built, this tyre combines winter performance, energy efficiency, optimal grip and sporty responsiveness. It delivers consistent performance, so drivers can count on the tyre throughout its lifespan. Alpine is the first auto manufacturer to select the brand-new MICHELIN CrossClimate 3 Sport.  We are confident that this tyre meets the vehicle's demands and the expectations of consumers seeking long-term safety, simplicity and sportiness. We’re very proud of Alpine’s trust in us.”

Dominique Stempfel President of the French Tyre Manufacturers Association (Syndicat du Pneu), said, “The jury chose to honour the MICHELIN CrossClimate 3 Sport for pioneering a new segment: an all-season tyre designed specifically for sports car drivers seeking the year-round advantages of an all-season tyre without compromising on performance or safety.”

Continental has received the 43rd KS Energy and Environment Award in the vehicle technology category from Germany's Automobilclub KS e.V., recognising its leadership in sustainable mobility. The honour highlights Continental's UltraContact NXT, its most eco-friendly series tyre to date, which contains up to 65 percent renewable, recycled and ISCC PLUS-certified materials.

As part of the award, Automobilclub KS e.V. is donating EUR 10,000 to Kleine Herzen Hanover, a charity supporting paediatric heart care at Hanover Medical School since 2006. The funds will aid therapies and facility improvements for young patients.

The UltraContact NXT combines sustainability with performance: up to 32 percent renewable content, five percent recycled materials and 28 percent ISCC PLUS-certified bio-based and circular-sourced components. All available sizes achieve the EU tyre label's top 'A' rating for efficiency, wet grip and noise reduction.

Established in 1981, the KS Energy and Environment Award has long promoted emissions-reducing innovations in transport. Under the patronage of Germany's Federal Ministry for Economic Affairs and Climate Protection since 2022, the award underscores Continental's alignment with national sustainability goals through cutting-edge tyre technology.

Kristina Kumme, Continental Tires' Strategic Program Manager, EMEA, said, "With the UltraContact NXT, we have taken a significant step forward by combining maximum sustainability with excellent performance. We are pleased that the KS Energy and Environment Award jury recognised this innovative development, and we are honoured to support a significant charitable organisation with a EUR-10,000 donation through this award.”

Prof Dr-Ing. Dieter Anselm, a member of the expert jury, said, "For us, this volume tire is clear proof that Continental is working hard to promote innovative technologies and sustainable solutions throughout the entire value chain. Given that every car, regardless of its drive type, needs tyres today and will continue to need them in the future, this innovation has a significant impact.”

Bridgestone Corporation has reached an agreement to sell its subsidiary, Bridgestone Carbon Black (Thailand) Co., Ltd. (BSCB), to Tokai Carbon Co., Ltd. and Thai Tokai Carbon Product Co., Ltd. This divestment aligns with Bridgestone’s strategy to enhance its global business resilience by adapting to market changes and focusing on high-value segments.

As part of its Mid-Term Business Plan (2024–2026), Bridgestone is optimising its operations to strengthen growth and competitiveness. The company is prioritising its premium tyre business, aiming to boost productivity and innovation across the entire value chain – from materials development to logistics and sales – with a focus on its Dan-Totsu (best-in-class) products. The sale of BSCB supports this strategy by allowing Bridgestone to collaborate with specialised partners like Tokai Carbon, which possesses deep expertise in carbon black production and supply chain management.

Beyond securing a stable carbon black supply, Bridgestone and Tokai Carbon are jointly exploring sustainable solutions, including producing carbon black from recycled tyres. This partnership will enhance Bridgestone’s long-term competitiveness while advancing its sustainability goals. However, the company will retain in-house carbon black production for strategic applications, such as premium and motorsport tyres, through its Japanese subsidiary, Asahi Carbon Co., Ltd. This ensures control over critical technologies that align with its core business and sustainability initiatives.

The transaction, part of Bridgestone’s second-stage business restructuring, is expected to have minimal impact on its current fiscal year financial performance. The company remains committed to sustainable growth, balancing strategic in-house capabilities with collaborative ventures to maintain its leadership in the tyre industry.

Investigation reveals coordinated theft by contractors and employees through bulk pilferage and excess loading schemes

Goodyear India Limited disclosed that a comprehensive investigation by Ernst & Young uncovered a sophisticated theft operation at its Ballabgarh manufacturing plant, resulting in the loss of 4,571 tyres valued at approximately INR 39.11 million.

The tyre manufacturer’s board reviewed the investigative findings during a meeting that concluded last week, revealing what the company described as “potential theft of tyres in bulk by contractual workers involved in security, warehousing and loading operations, acting in collusion.”

Dual Theft Operations Exposed

The Ernst & Young investigation, spanning October 2023 to November 2024, identified two primary theft methods that enabled the systematic pilferage of farm tyres from the Faridabad-based facility.

Bulk Theft Scheme: The more significant operation involved truckloads of tyres being removed from the plant through coordination between third-party loading supervisors, warehouse workers, security guards, and external accomplices. Electronic communications reviewed by investigators revealed references to 4,057 tyres across 20 dates between July and December 2024, with detailed SKU counts discussed among the conspirators.

Security records were deliberately manipulated to conceal the theft, with one security contractor admitting to accepting kickbacks from a loading supervisor to avoid recording truck details carrying stolen merchandise.

Excess Loading Operation: A secondary scheme involved loading additional tyres beyond invoiced quantities onto legitimate shipments, with the excess stolen during transit. The investigation revealed a significant increase in overweight dispatches during the July-November 2024 period, with 50 per cent of overweight trucks dispatched during this timeframe, compared to historical patterns.

Quality assurance protocols were compromised, with one employee admitting to receiving instructions from a third-party warehouse vendor to disregard overweight trucks and dispatch them without conducting mandatory quality studies. The employee estimated that 5-6 excess tyres were loaded per truck in select shipments to Goodyear warehouses.

Quality Control Manipulation

The investigation also uncovered systematic inflation of tyre rejection quantities during pre-dispatch inspections. A quality assurance employee acknowledged receiving kickbacks to artificially inflate rejected tyre counts in daily reports, despite no physical rejections having occurred, allegedly to help manage inventory shortfalls maintained by the third-party warehouse vendor.

Data analysis revealed an increase in rejection rates in 2024 compared to 2023, with the manipulation involving collusion between employees and third-party quality inspectors.

Operational Control Gaps

Beyond the theft schemes, Ernst & Young identified significant weaknesses in Goodyear’s inventory management and production processes. The manual production handover system lacked proper verification, with multiple employees admitting that the defined processes weren’t followed.

Production records maintained manually revealed discrepancies, with multiple spreadsheets containing different production numbers for the same periods. The investigation found that production during shutdown periods wasn’t recorded in the Production Management Information System, creating variances that couldn’t be validated due to unreliable manual records.

Financial Impact and Response

The financial impact of the inventory shortage identified in November 2024 was already recognised in Goodyear India’s financial statements for the quarter ended 31 December 2024. “The management has taken cognisance of the findings and initiated appropriate legal and disciplinary actions against those involved,” the company stated in its regulatory filing. “Proactive measures, including a site security assessment and tightened controls, have been implemented.”

Investigation Methodology

Ernst & Young’s fact-finding review employed comprehensive investigative techniques, including data analytics, transaction testing, background checks on suspected third parties, forensic imaging of electronic devices, and interviews with employees and contractual workers.

The investigation covered electronically stored information from the laptops and server backups of suspected individuals, utilising keyword-based searches to identify suspicious communications that proved crucial in establishing the theft patterns.

Regulatory Compliance

The disclosure fulfils Goodyear India’s obligations under Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. The company initially informed stock exchanges of the inventory variance on 12 February 2025.

“The Company remains committed to upholding the highest standards of corporate governance and safeguarding stakeholder interests,” Goodyear India stated in its filing.