Opportunity in crisis

“In our experience,” Norman said, “Companies respond to a crisis in one of two ways. They either stop everything and just try to survive. Or they continue to invest and hope to come out of the crisis in a relatively better position than their competitors. We have taken the second approach.”

VMI did the same thing over a decade ago, after the 2008 – 2009 financial crash. During this period, VMI invested heavily in additional R&D and that led to the fast-track development of the MAXX tyre building machine. The recession, in other words, prepared the way for VMI’s greatest commercial success. During the past few months, the R&D team at VMI has again been working hard on new concepts, improvements to existing products and capability enhancements, moving into such comparatively new areas as software and data analytics.

All manufacturing companies depend on their Intellectual Property (IP) to differentiate themselves in the market, and VMI is no exception. VMI’s patented technologies are at work across the Asia Pacific region: in China, Japan, Korea, India, Thailand, Taiwan and Malaysia. VMI works hard to safeguard its IP in all the countries where it operates. India is a key market for VMI because the independent judiciary there has an excellent track record in protecting the innovations of overseas companies entering the Indian market.
 

“Returning to ‘normal’,” comments Mike Norman, “may not be a realistic option, because our market in the next few years is likely to be very different from the recent past. You will not move from survival to growth by doing the same old things. The companies that stay successful will need to think and act differently.”

Recovery roadmap

So, what exactly will the future look like? And how can businesses in the tyre industry build a roadmap out of the crisis and towards a more confident, successful future? The Covid-19 crisis, after all, has just accelerated trends in the market that were already evident will not go away when the virus is contained.

The industry was in a state of rapid change long before the virus struck. Demand was dropping, globalisation had stalled, the industry was facing much stricter environmental regulations, while electric vehicle growth was rising fast, with a need for more tyre variants in smaller production runs… It is not possible to be certain of what other long-term changes might happen as a result of the Covid-19 crisis, but it’s pretty clear there will be many of them. This means that being more agile is not a “nice to have”: it’s a basic necessity.
 

“No-one is likely to recover entirely on their own,” as Mike Norman puts it. “We need to look for ways we can work together, support each other and rebuild as partners.” How to do that? Norman suggests three ways to accelerate recovery and build a stronger, more successful future, no matter how uncertain the market seems. First, work smarter and be more agile. Second, optimise everything. Third, focus on Total Cost of Ownership (TCO).

Work Smarter, be More Agile

No-one accurately predicted the economic impact of the Covid-19 crisis (even though potential pandemics were seen as a priority risk by most governments). The moral of this? We need to be ready for anything and everything. There will probably be a major crisis of some kind every decade and the industry must respond better to the next one. The best advice is to make your whole business more agile and resilient: easy to say but a lot harder to do!

Dealing with Change

“You don’t make a business agile overnight,” says Mike Norman, “but you can start to gain the benefits from carefully planned change pretty soon. And the benefits grow as you make more progress in the right direction.” Becoming more flexible and ready for the unexpected depends on the strategic choices you make. In particular, two factors will define how ready for the future your business becomes: Platforms and Data.

From Machines to Platforms

When VMI launched the MAXX tyre building machine over ten years ago, it was the first step towards building production platforms, rather than standalone machines. Platforms are the key to future-proofing a business, because they can stay up to date, no matter how fast and unpredictable market and technology changes may be. Every major production platform is built from components that are constantly being worked on, improved, upgraded, replaced and added to with new capabilities. By investing in a platform, your equipment can always stay at best practice level, so your investment need never become obsolete.

Updating the MAXX

With VMI’s MAXX machine, for example, in the past 10 years 7 major upgrades have been taken to market and many customers have simply replaced (for example) the original vision technology with the hugely improved PIXXEL system.

PIXXEL includes a greatly improved camera, now built in-house to meet a very precise specification and higher protection against dust and even water. As an integrated system designed from the ground up, PIXXEL also removes the need for a separate PC and transforms performance in such key areas as component guidance, breaker and tread splice monitoring and carcass drum monitoring. It enables more proactive intervention, can enhance process efficiency, and contributes to better use of machine data and management insights through analytics.
 

This is one example of how the platform approach, enabled by intelligent retrofitting, helps make investments go further, while improving agility. No company can afford to rip out and replace its existing investments, just because a hot new technology is being introduced. It’s about evolution: always being competitive with, or preferably, ahead of the market.

Making Better Use of Data

Production machines of every kind generate vast amounts of data, but our industry has not traditionally been very inventive about using this for competitive advantage. If you are going to build a more agile business, then data is going to make a very important difference. Data in the future will enable:

• Predictive and proactive maintenance, reducing unplanned downtime and leading to more efficient management of production equipment.
• Analytics to spot emerging trends, from faults to potential process optimisation opportunities.
• Managing groups of machines from a central control area, reducing human touch points and speeding production.

Data is not a magic ingredient, of course, and neither is it new. The big change here is the ability to apply analytical tools and create insights for action in real, or near real time. This means the tools to enable greater flexibility are available now. We just need to use them more effectively than before.

Optimise everything

Change on a large scale can cause anxiety and, let’s face it, by now everyone has suffered enough disruption to last them for a long time. As Mike Norman puts it: “We don’t want to suggest anything that makes life harder at a difficult time, so the key to moving forward, we think, is step by step, keeping risk as low as possible.”

Process optimisation should be carried out on an incremental basis. As you work to analyse and improve all aspects of your production processes, you begin to find that complete stages can be cut out, time will be saved, resources used (energy, materials, people…) will be reduced and every saving goes straight to the bottom line. These are the tactical changes that drive immediate improvements, while buying time for longer-term, strategic changes.
 

Optimise Core Processes

Nobody tolerates inefficiency or poor-quality processes willingly, but sometimes it is easier just to let things stay as they are to avoid difficult decisions and potential disruption. Now is the perfect time to rethink processes and optimise them.

Places to look include materials storage and handling, transportation through the plant, improved testing to identify faults early in the process… This is all about organising the people and assets you already have, to make them more efficient. VMI’s experience is that you can remove over 10% of costs from production processes before you need to do anything disruptive. That’s additional profit every company needs to bank.

Optimise Service Options

Service within the tyre industry has traditionally been about break fix, supply of spares and providing engineers on site fast. These remain important and necessary, but service can and should mean a whole lot more, especially now we are using data to identify emerging trends and manage production equipment more effectively.

Rich data flows and new analytical tools enable you (and your service provider) to identify issues before they become faults and redefine policies to make routine maintenance more agile, responsive and proactive. This helps ensure that assets run as efficiently as possible, with minimal downtime.

“We at VMI,” Mike Norman said, “are becoming more ambitious about how we define Service. We think it is about helping customers be more successful in a strategic sense, often by fine-tuning their assets and processes to be more efficient.”

This goes beyond maintenance. Data analysis, backed by responsive service, helps tyre building companies respond to market needs more flexibly, constantly making their production environment more flexible. It’s not just about the machines, therefore, but about how you optimise technology across their entire life cycle for better response to changing patterns of demand.

Optimise People Management

In the end, all businesses depend on the quality of their people, and we believe this difficult period gives manufacturers a much-needed opportunity to look at who they employ, the skills they possess, the training they receive and how they interact with production equipment. Here, as well, expert service support can prove valuable.

“We possess a huge resource in the form of expertise, domain knowledge and insight,” Mike Norman comments. “This is at the disposal of our customers and we encourage them to make more use of what we can deliver in human terms.” The aim is to transfer skills and knowledge in order to help customers improve the quality of their own human expertise.

The future is likely to be more about extremely flexible, extremely smart systems, delivering precisely to the ever-changing needs of the market. Maximising the potential of these systems is going to need smarter people, with improved training and access to specialised expertise.

“We respect people too much to treat them without due care and attention. We assume our customers feel the same way.”

Employees have many of the right answers to tomorrow’s problems in their own heads. We need to maximise this human capital.

Solving the cost equation

Every company in our industry has taken a financial hit. Sales have been stopped in their tracks in many cases, so cashflow projections are no longer relevant and income streams have dried up. At times like this, nobody makes friends by suggesting that the right option for investment could be the one with the highest capital cost.

Why is TCO so important? It’s about getting into production and turning investment into profit as fast as possible. VMI’s engineering approach is designed to ensure that each machine works out of the box. It does not require long months of fine tuning and commissioning work on customer sites to reach peak efficiency. Installation leads to delivery right away- that’s the idea, ensuring that your investment leads to profit as fast as possible.
 

Yet, for businesses that believe in their own long-term future, all the investment decisions you make in this, the worst of times, will be critical in defining how well you compete once the crisis is over. Mike Norman’s view: “The three points we think you should always bear in mind are Total Cost of Ownership (TCO), Quality and Value.” Here is why.

Total Cost of Ownership

Production assets, such as VMI’s MAXX machines, are designed to stay fully operational for around 20 years. By the time owners get to year 5, the key to profit will be productivity and efficiency day by day, month by month, year by year.

The machine is designed to work efficiently, with planned maintenance and regular upgrades as new options appear. “Our customers can make promises to their own customers with confidence,” said Mike Norman. “They know they will be able to deliver as planned, on time, meeting contracts every time.” You cannot operate successfully with demanding end users unless you have this assurance.

If you buy a machine that does not work at once, you need to consider the major hidden costs due to being slow into production once it is delivered. These should be added to the true investment cost. So should downtime, scrappage, extra power usage, extra employee time through the entire product lifecycle… It mounts up. If you believe your company has a long-term future, then TCO is the only financial measurement that counts.

Quality as the Key

Tomorrow’s market will almost certainly require shorter production runs of high-quality products, with many more variations. We won’t be able to afford the scrappage levels that have been normal in the past. High product standards must go hand in hand with higher levels of environmental efficiency, lower energy usage, near elimination of waste and new levels of production flexibility. Assured quality will be the key to staying competitive in this new reality.

Moving up the Value Chain

In an uncertain market, ambitious companies need to aim for higher value products and prove they deserve to charge premium prices to meet their profit targets.

VMI machines can create auditable data that will show, not only what the product is, when it was produced and where, but also full operational conditions at the time. This can go into such fine detail as the materials used, cuts and splices made, length of storage, when and how the compounds were mixed: the entire life cycle from design to delivery.

Tyres have their own pedigrees, that is already taken for granted, but now it is possible to review all relevant data in much greater depth than before. Those companies able to prove their own quality standards will move up the value chain and maximise their profits. Those that can’t, will not.

Facing the Future

Where does all of this leave us as we face the task of rebuilding economies, our industry and our businesses? Especially in countries that are strongly dependent on a globalised marketplace and are facing real concerns about the future of free trade?

South Asian companies will continue to find opportunities in the global market, but they may need to rethink their strategies to maximise these. There is a model in other industries for the changes that need to happen in our own. For example, India has developed from being an offshoring centre for low cost IT processing to becoming home to global leaders in quality and innovation. VMI expects to see tyre producers in Asian countries follow a similar path, from cost competition to quality leadership. We are ready to help in this process.
 

Mike Norman’s view is that companies need to build their own road to recovery, and keep their nerve as they move forward. “The market will come back,” he says, “but it will take time and there will be some rough patches ahead.” But there are plenty of actions that can be taken here and now to bring recovery closer and help secure the long-term future of dedicated and ambitious companies.

“Being more agile, more flexible in everything we do is a non-negotiable requirement,” he emphasises. “It’s not enough to talk about unpredictability, or expect the unexpected: you have to build the capabilities that lead to true agility.” The good news is that it is possible to take short-term action, without high cost and improve performance relatively fast.

“Flexible production platforms, more and more creative use of data and analytics, straight through production with minimal stops for materials handling, building to precise market needs; these are the big prizes that ambitious companies need to aim for.”

There is no “either-or” about this. By making small-scale, rapid improvements, companies make space for the larger changes that will transform their long-term prospects. Will it be easy? Probably not, but, as Mike Norman says: “We have to face up to the challenges of our own times, whether we like them or not. If we believe in the future of our companies, we will accept the challenge and be successful.”

 

Pirelli celebrated a dominant one-two finish at the Rally of Ceredigion, the penultimate round of the 2025 FIA European Rally Championship. Jon Armstrong secured a commanding victory in his Pirelli-equipped Ford Fiesta, finishing over 29 seconds ahead of fellow Pirelli driver Jürgenson Romet in another Fiesta.

The success extended beyond the podium as Andrea Mabellini delivered a powerful performance in his Pirelli- equipped Skoda Fabia, winning the Power Stage. This critical result earned him valuable points, moving him into second place in the overall championship standings ahead of the season's final round. The Welsh victory also propelled Pirelli into the lead of the Tyre Manufacturers’ championship.

This outstanding team result was made possible by the exceptional performance and consistency of the complete P Zero range, which was used in its entirety for the first time this season. Crews were equipped with P Zero tyres in hard, medium and soft compounds, perfectly suited to the cool Welsh temperatures. The versatile Cinturato wet tyre also proved indispensable, providing crucial grip on rain-soaked stages.

Pirelli’s winning weekend was further highlighted by a victory in the FIA European Historic Rally Championship, where Jari-Matti Latvala won the Greek round driving a Toyota Celica on Pirelli tyres.

Terenzio Testoni, Pirelli Rally Activity Manager, said, “Our products for both dry and wet conditions once again demonstrated their versatility across all surfaces, in extremely variable and challenging conditions. We are heading for a thrilling championship finale: both Mabellini and Armstrong remain firmly in contention for the title. In Croatia, for the final round of the season, we will undoubtedly witness a fierce battle – and tyres will once again prove decisive. In the meantime, congratulations to Jon for his victory here in Wales: he showed authority and composure, as well as talent. Our congratulations also go to Romet, another promising young driver selected through the FIA Rally Star programme, supported by Pirelli.”

World-record holder endurance driver Rainer Zietlow embarked on the ambitious ID. Buzz World Tour on 1 July 2025, launching from Volkswagen Commercial Vehicles' headquarters in Hanover, Germany, with an objective to secure a Guinness World Record by travelling through 75 countries across six continents in a zero-emission vehicle. This eight-month, 80,000-kilometre expedition in a fully electric VW ID. Buzz is designed to demonstrate the capabilities of sustainable mobility on a global scale.

A critical partner in this endeavour is Giti Tire, which is supplying its GitiSynergy H2 tyres for the entire circumnavigation. This collaboration serves as a rigorous real-world test of durability and performance, underscoring the vital role that tyres play in the overall efficiency and success of electric vehicles. The mission aims to prove that clean, long-distance travel is a practical reality when advanced battery technology is supported by high-quality, innovative components.

The journey's initial phase saw the electrified convoy traverse diverse European landscapes. After a ceremonial send-off, the tour commenced, with early stops encompassing cultural landmarks from Shakespeare’s birthplace in the UK to the vibrant streets of Dublin. The route then challenged the team with the formidable snow-capped peaks of the Alps, a passage by Vatican City, and the rugged terrain of the Balkan Mountains. Progress was tested by severe weather, including intense storms in Spain that forced a painstakingly slow crawl through flooded roads. By the end of July, the tour had advanced through Eastern Europe into Turkey, Georgia and Armenia before pushing into the vast expanses of Central Asia, reaching Uzbekistan and the Aral region.

Looking ahead, the expedition faces its most demanding challenges. The upcoming leg will navigate the remote and harsh environments of Central Asia, Mongolia and China, where charging infrastructure is sparse. The journey will then continue through Southeast Asia before moving south to Australia and Oceania. These formidable conditions will push the vehicle and its tyres to their limits, truly testing the resilience of sustainable transportation. With every kilometre, the tour moves closer to its world record goal, delivering a powerful message that the future of global travel is unequivocally electric.

India’s tyre retreading industry has petitioned the government to slash goods and services tax (GST) rates from 18 percent to 5 percent on retreading services and materials, arguing the move would support environmental goals and the circular economy.

The Tyre Retreading Education Association (TREA), representing over 15 Indian retreading material manufacturers and retreaders serving approximately 10,000 retreaders nationwide, has written to authorities requesting the tax reduction across multiple product categories, including retreading services, retreaded tyres and retreading materials.

The industry body estimates India’s tyre retreading sector generates annual revenues of around INR 50 billion, with tread rubber manufacturing adding another INR 30 billion yearly. Last year, whilst 20,000,000 new truck tyres were sold domestically, approximately 80,00,000 truck tyres were retreaded, alongside smaller volumes of tractor, earthmover and car tyres.

“We are committed to educating and promoting retreading benefits: cost savings, safety, sustainability, and circular economy,” stated Karun Sanghi, Chairman of TREA, in the petition.

The request comes after recent GST amendments that reduced rates for new truck tyres from 28 percent to 18 percent, and cut levies on tractors, tractor tyres and tractor parts from 18 percent to 5 percent. However, conventional tread rubber used primarily for tractor tyres and retreading services for tractor tyres remain at the higher 18 per cent rate.

“We would request you to reduce the rate to five percent in line with other tractor products,” the association said, highlighting the inconsistency in tax treatment.

The industry argues that retreading aligns with government environmental priorities, pointing to the 2022 Extended Producer Responsibility (EPR) policy for tyres introduced to reduce environmental impact. The Environment Ministry has recognised retreading as “a very important part of the circular economy on tyres” and continues developing disposal systems for end-of-life tyres.

The association drew parallels with other environmentally friendly sectors that enjoy preferential GST rates, noting that electric vehicles are taxed at five percent, whilst rates for various renewable energy devices and solar water heaters were also reduced to five percent.

“The government recognised the need to support environmentally friendly industries,” the petition stated, emphasising that retreading represents “a critical part of the circular economy of tyres” supported by both the Environment Ministry and Central Pollution Control Board.

The group argued that increased tyre retreading would help India achieve its zero carbon footprint targets by extending tyre lifecycles and reducing waste requiring disposal.

India’s tyre retreading industry serves as a cost-effective alternative to new tyres whilst supporting sustainability objectives through reduced raw material consumption and waste generation.

The association has offered to provide additional information and meet with government officials to discuss the proposal further.

Pirelli has made history by becoming the first tyre manufacturer to receive the esteemed ADI Compasso d’Oro Award, one of the world’s most authoritative prizes in industrial design. The award was presented at a special 70th-anniversary ceremony during Expo 2025 in Osaka, Japan. The honouree was the Pirelli P Zero E, recognised in the Design for Mobility category for its innovative approach to sustainable performance.

This recognition aligns with the Expo’s theme, ‘Designing Future Society for Our Lives’, specifically under the pillar of ‘Connecting Lives’, which rewards products that combine advanced technology with reduced environmental impact. The P Zero E is the world’s first ultra-high-performance tyre to incorporate more than 55 percent recycled and bio-based materials. It represents a significant step forward in tyre design, merging technical excellence with circular economy principles without compromising safety or performance.

The tyre has achieved a triple A rating on the European tyre label for wet grip, rolling resistance and external noise – a rare distinction that underscores its balanced capabilities. It is particularly suited for electric and hybrid vehicles, incorporating Pirelli’s Elect technology that can extend vehicle range by up to 10 percent. It also includes the RunForward system, which allows drivers to continue their journey even after a puncture.

Developed using artificial intelligence and data-driven engineering across Pirelli’s global R&D network, the P Zero E stands as a symbol of next-generation mobility. It will be exhibited in the Italian Pavilion at Expo 2025 Osaka before joining the permanent collection of the ADI Design Museum in Milan.

This award continues Pirelli’s long-standing relationship with the Compasso d’Oro, which has previously acknowledged the company’s contributions to industrial and graphic design, further cementing its role as a pioneer at the intersection of technology, sustainability and design.

Piero Misani, Executive Vice President and Chief Technical Officer, Pirelli, said, “This prestigious recognition celebrates Pirelli’s design excellence and the innovative scope of products like P Zero E, confirming the role of research and development as a driver of progress and sustainability. Our constant commitment in the field of R&D has made Pirelli a benchmark in the global industry for technological innovation and cutting-edge solutions for future tyre development, thanks to the use of new materials with reduced environmental impact and the increasingly widespread use of advanced artificial intelligence throughout every phase.”