FAQ

• Something about Pirelli's positioning in this sector?
  Pirelli is a “macro-regional player” and leader in Latin America, with a competitive global industrial presence. Today, 75% of its production is located in rapidly developing countries characterised a growing demand and more favourable industrial costs. Pirelli occupies a pre-eminent position in the ‘Premium’ segment with long-standing relations with the leading brands in the automobile industry and offers a complete range of ‘green’ products which represent a total of 37% of its turnover today.
• What is Pirelli's geographic exposure?
  Pirelli Tyre revenue for 2010 totalled € 4,772 million divided equally between mature markets (Europe 40%, NAFTA 10%) and rapidly developing economies (Latin America 34%, Middle East/Africa 10%, Asia Pacific 6%). Italy has a 9% share of revenues for the Tyre business.
• Leadership in Latin America?
  With sales of $ 2.2 billion, Pirelli presently occupies a leading role in Latin America. Pirelli is present in this region with seven production plants: one in Argentina, five in Brazil and one in Venezuela which together produced approximately 410 thousand tonnes of pneumatic tyres (car, SUV, van, agricultural and industrial vehicles, truck, bus and moto tyres) in 2010, equivalent to approximately 40% of Pirelli production.
  Today, Pirelli is one of the best well-known brands in Latin America, highly regarded by consumers, vehicle manufacturers and its partners and confirmed by over 20 awards received over the years. In particular, Pirelli was elected once again in 2010 for the seventh year running as the ‘top of mind’ brand, meaning the brand absolutely preferred by consumers.
• What effect is the current economic scenario having on Pirelli?
  Pirelli's high positioning in the Replacement sector (75% of turnover compared to an average of 70% for competitors) renders the company's operations more flexible and less exposed to eventual negative trends in the vehicle industry and the demand for original equipment.
• What is the current productive capacity of the Pirelli group?
  As of December 2010, the productive capacity of Pirelli totalled 56 million pieces on the Consumer segment and 5.8 million pieces in the Industrial segment.
  
  19 production plants are currently operative, mainly in countries with low production costs (71% of Consumer production, 93% of Industrial production) such as Romania, Turkey, China, Egypt and Latin America.
• What about the premium tyre and the relative incidence on the overall turnover?
  Our Premium Tyres are characterised by:

  • - high performance, marked with the following coefficients of velocity, W (up to 270 km/h), Y (up to 300 km/h) or Z (over 300 km/h);
  • - Runflat technology allows then to cover a distance of 80 km at 80 km/h in the case of puncture;
  • - Winter with a velocity coefficient ? H (up to 210 km/h);
  • - SUV equipped with a velocity coefficient ? H (up to 210 km/h);
  • - for competition driving (Motorsport).

  Premium tyre sales represent 60% of Pirelli's total consumer sales at the end of 2010.
  
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• What about Green Performance?
  Pirelli's “Green Performance” technology permits the reduction of fuel consumption and minimises environmental impact due to the use of eco-sustainable materials which last longer and produce less noise when on the road.
  
  Pirelli has always been very attentive to environmental issues and has developed a series of technologies capable of reducing the environmental impact of its products through their entire life cycle from production to disposal. Our range of green products covers all production segments and is continually evolving as seen by the recent launch of the Cinturato P1, already in line with the latest European environmental legislation.
  
  The sale of green products respresent 37% of total revenue in 2010.
  
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• Weight of winter tyres
  The incidence of winter tyres on the total turnover is about 10%. In order to increase road safety, many European countries are moving towards introducing legislation which makes the use of winter tyres obligatory in certain weather conditions or periods of the year. For this reason also, interest for winter tyres is increasing rapidly. The Pirelli Winter tyre range is designed to maintain performance and grip at temperatures below 7°C on wet road surfaces or snow. The technology underpinning these products guarantee less risk of aquaplaning and reduces the breaking distance by 10% on wet road surfaces at low temperatures and 20% on snow with high performance and a comfortable drive.
  
  Winter tyres are marked with the code M+S and the symbol of a mountain with a snowflake on the slope.
  
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• How much is the Pirelli brand worth?
  Pirelli is one of the most well-known Italian trademarks in the world. Interbrand, a leading consulting services company specialised in the assessment of intangible goods, has attributed an estimated value of € 1.8 billion to the Pirelli brand as of 2010. The Pirelli trademark represents a potential leverage point and will be gradually reinforced by its increasing presence in the Formula 1 and in the industrial design business PZero.
  
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• Is Pirelli making a comeback to Formula 1?
  In June 2010, the FIA (Fédération Internationale de l’Automobile), the teams and the Formula 1 management team chose Pirelli as the sole supplier for the three-year period 2011-2013. Pirelli offers the Formula 1 teams six different typologies of tyres for all possible weather conditions throughout the year:

  • - four slicks with different mixes for use on dry surfaces;
  • - a rain tyre developed specifically for conditions of intense rain;
  • - and an intermediate tyre to be used for damp asphalt and light rain.

  The last Grand Prix in which Pirelli participated was in Canada in 1991, as partner of the Benetton stable.
  
  Pirelli's decision to return to Formula 1 is linked to a changing business model. The agreement foresees that the 12 teams cover all industrial and logistics costs associated with the supply of tyres.