New tyre management contracts to include fuel savings guarantee, says Michelin solutions
Stand 5J40, Hall 5, Commercial Vehicle Show, NEC, Birmingham, 14 – 16 April 2015
Michelin solutions is to introduce a new generation of ‘Pence Per Kilometre’ (PPK) tyre management contracts offering customers a contractual fuel saving commitment, to help make their fleets even more efficient.
Due for launch at the CV Show on 14 April 2015, the fuel saving commitment will be available on EFFITIRES™ contracts when fitting premium low rolling resistance tyres.
The move is expected to see Michelin solutions, a company within the Michelin Group, become the first provider in the marketplace to contractually commit to fuel savings on its tyre management contracts.
Paul Davey, Commercial Director of Michelin solutions in the UK and ROI, explains: “We have absolute confidence that when we take responsibility for managing a fleet’s tyres, we can free up the customer’s time to concentrate on their core business, plus we extend tyre life and increase fleet uptime.
“But we also focus on keeping every tyre in peak operating condition – effectively within the ‘green band’ of tyre performance. When you combine this with advances in Michelin’s low rolling resistance tyre technology, we have a seriously strong fuel saving proposition.”
Michelin solutions says its next-generation EFFITIRES™ contracts will include a fuel saving commitment expressed in litres per kilometre (for instance, 0.5 litres of diesel per 100km), although it believes that in most cases customers will save significantly more.
To be eligible an operator must have telematics fitted across at least 70 per cent of its fleet, have an operation suited to fitting Michelin low rolling resistance tyres and not currently be using the fitments. In the event the fuel saving target is not achieved, Michelin solutions will reimburse the commitment on a pro-rata basis.
Tyre management contracts are popular with medium to large-size fleets as they enable operators to outsource tyre management and focus on their core business. They also allow fleets to benefit from predictable tyre costs over an agreed contract period, backed by frequent fleet inspections, detailed performance reporting and 24/7 roadside assistance.
Michelin solutions will also use the CV Show to promote its separate EFFIFUEL™ offer to fleets – a solution which brings together an array of fuel-saving levers, including eco-driver training, fitment of on-board telematics and tyre management, to improve fleet efficiency and profit margins over periods of up to four years.
The Michelin solutions stand (5J40) will be situated in Hall 5, adjacent to the Michelin Tyre plc stand (5H40).
Michelin solutions was established as a new company within the Michelin Group in May 2013, replacing the entity previously known in the UK as Michelin Fleet Solutions. It currently employs around 800 people globally and is responsible for in excess of 500,000 vehicles currently on contract. Michelin solutions is dedicated to designing, developing and commercialising solutions for fleets of trucks, buses, coaches, cars and vans. Its solutions are aimed at fleets wanting to improve their efficiency, productivity, and environmental footprint, in a global and customised way.