Pirelli SpA chairman Marco Tronchetti Provera sees a hint of light at the end of the European economic meltdown tunnel, but it remains distant in his view. And that is having a negative effect on the tire industry.
In a recent chat with CNBC, Tronchetti Provera said that the European markets remain “difficult,” despite what some European pundits say. The recovery that the Pirelli chief sees has come at the top end of the economic spectrum.
"In Europe we see small signs of recovery," he said. "The premium segment has been preforming well even in these uneasy years and Europe remains a region with a lower level of growth.
"I think that we are not going to face a major improvement,” he said. “There will be some improvement. I think and hope we’ve touched the bottom and some recovery will come."
Pirelli still sees great opportunity in Russia, Argentina and Indonesia, where it has pinned hopes on building a premium following. “Tronchetti Provera recently met with the head of Russian oil company, Rosneft, to discuss a deal to open up Pirelli stores in the company’s Russian filling stations,” CNBC reported. “Tronchetti Provera said of the deal: ‘It is an important step in Russia. Now we have the two factories that are running better and better, so we have volume so we can supply all the region in a proper manner.’”
On a global basis, Pirelli expects that between “2011 and 2015 the premium car market will grow by 4.7% annually, compared to 3.6% growth in the non-premium sector,” CNBC said.
