Michelin’s Green Meters 

October 30, 2007 

Berlin – New York – Paris – Shanghai 

Press Kit 

www.michelin­green­meter.com 

For Additional Information in North America, 

including high resolution photos and broadcast quality video,  visit www.michelinmedia.com

To obtain high­resolution, formatted­for­TV images and photographs of the Michelin green meters in the 

four cities, go to: www.thenewsmarket.com/michelin. If you are visiting this site for the first time, you will need to sign in to download the videos. For assistance, contact: journalisthelp@thenewsmarket.com
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Contents 

Pr ess Release  page 3 

I. Michelin’s green meters:  A worldwide event for a global environmental challenge  page 4

1. Michelin green energy saving tires:

Quantifying the environmental benefits in real time

2. The environmental impact of tires:

An ignored issue 

II. Michelin’s environmental commitment:  Helping to r educe CO2 emissions  page 7

1.  Reducing CO2 emissions:

A priority for Michelin’s research and development teams

2.  Environmentally friendlier vehicles, thanks to Michelin tires 

3.  Promoting the creation of fuel­efficiency labeling for tires

4.  Environmental technologies for truck tires 

III. Michelin’s worldwide commitment to better mobility  page 16

1. Corporate values

2. Michelin Performance and Responsibility:

Creating the conditions for Michelin’s long­term growth 

3. The Challenge Bibendum:

Bringing together mobility stakeholders 

Appendixes:

Appendix 1: Calculation methodology  page 19

Appendix 2: Mobility challenges of the future  page 21
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PRESS INFORMATION 

MICHELIN’S “ GREEN”  METERS PAINT THE SKY WITH 

GLOBAL FUEL EFFICIENCY STORY

Each second, around the world, Michelin green energy saving tires help 

reduce fuel consumption and lower CO2 emissions 

NEW YORK CITY (Oct. 30, 2007) – Beginning today, Michelin will project meters in four major cities

around  the world—Berlin, New York City, Paris and Shanghai. These meters will show the fuel savings

and reductions in CO2  emissions since 1992—when this revolutionary technology was first introduced— 

thanks to Michelin green energy saving tires.  Michelin green energy saving tires include a variety of passenger car, light truck and commercial truck tires

that are optimized for fuel economy by reducing their rolling resistance and weight without compromising 

other key performance factors such  as traction,  grip and  tread wear.  Reducing rolling  resistance also 

reduces CO2 emissions. 

Featuring the world­famous Michelin Man, the meters will be projected at 7 p.m. local time on the façade 

of the Park Inn Hotel in Berlin; on the NASDAQ and Reuters boards in Times Square, New York City; in 

the Port de Suffren at the foot of the Eiffel Tower in Paris; and on the City Group Mansion tower, across

from the Bund, in Shanghai. 

In 15 years, compared to conventional tires on the road, the 570 million Michelin green energy saving tires

sold  worldwide  have reduced  fuel  consumption  by an  estimated  2.38 billion  gallons,  resulting in  a 

reduction of CO2  emissions of 25 million tons, the equivalent of the amount absorbed by 880 million trees

in one year. This means that each second 11.6 gallons of fuel are saved and 240.6 pounds of CO2  are not 

released into the atmosphere. These figures will be on display to millions of people around the world. Full 

details of the Michelin Green Meter are available at www.michelin­green­meter.com. 

As a responsible citizen, Michelin seeks to  build awareness among  people  around the world  of the 

contribution that Michelin green energy saving tires can make to the environment. 

That’s because choosing the right tire can have a significant impact on the environment. This is especially 

important  today when  experts agree that road  transport  is a  major source of CO2  emissions, one of the 

greenhouse gases responsible for global warming. 

Fully aware of this challenge, Michelin, which allocates nearly 4 percent of its annual net sales to research 

and  development,  has made the design  of green energy saving  tires a  key component  of its innovation  strategy. So that consumers may integrate “green” criteria into their choice of tires, Michelin is highlighting 

the impact of tire choice on fuel  consumption  and on the environment. For Michelin, this initiative truly 

represents “a better way forward.” 

# # # 

For more information, visit www.michelinmedia.com or contact:

Lynn Mann 

office:  1 864 458 4698 

cell: 1 864 449 1864 

email:  lynn.mann@us.michelin.com
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I. Michelin’s Green Meters:  A worldwide event for a global environmental challenge

Berlin, New York, Paris and Shanghai are four major cities around the world whose growth has 

been driven  by the mobility of goods  and the millions  of people who come  and  go every day. 

That’s why Michelin chose these four locations to launch a truly unique event whose objective is

to focus the public’s attention on the environmental and energy issues involved in choosing the

right tire. 

Beginning  Oct.  30, 2007,  these four cities  will play  host to  Michelin’s  green  meters.  People 

passing by the City Group Mansion tower in Shanghai, China; the façade of the Park Inn Hotel in 

Berlin; the Port de Suffren at the foot of the Eiffel Tower in Paris; and the NASDAQ and Reuters 

boards in Times Square, New York City will see the reductions in fuel consumption and lower

CO2  emissions generated by Michelin’s “green  energy saving” tires since their launch in 1992.  The meters will continue to count, in real time, the ever­increasing fuel and CO2 savings as more

and more of Michelin’s environmentally­positive tires are placed into service on roads around the

world. 

Michelin green energy saving tires include a variety of passenger car, light truck and commercial 

truck tires optimized for fuel economy by reducing their rolling resistance and weight of the tire

without  compromising other key performance factors  such as  traction, grip and  tread  wear.  Reducing rolling resistance also reduces CO2 emissions.  Michelin has long been  committed to better mobility, meaning mobility that is “sustainable for

the planet and society over the long term.” Thanks to Michelin’s green meters, drivers will now 

have a better understanding of the environmental consequences at stake when they choose tires 

for their vehicles. 

1.  Michelin’s green energy saving tires: quantifying the environmental  benefits in real time

In each of the four cities, the Michelin green meters will display estimates of: 

ÿ Worldwide fuel savings  attributable to Michelin  green energy saving tires  compared to 

conventional tires on the road since 1992, a total of 2,380,056,909 gallons.  ÿ The ever­increasing fuel savings, thanks to Michelin green energy saving tires currently 

on the road, updated at a rate of 11.6 gal./second.  ÿ The amount of CO2  not released into the atmosphere since the introduction in  1992  of

Michelin green energy saving tires, a total of 25,119,890 tons.  ÿ The amount  of CO2  not released  into the atmosphere updated  at a rate of more than  240.61 lbs./second. 

2.  The environmental impact of tires: an ignored issue
5 

While many drivers are in favor of more environmentally positive mobility, most are unaware of

how tires can reduce a vehicle’s environmental impact by improving its energy performance. In a

recent survey 

1  by Michelin, tires are mentioned  as a source of pollution by only 24  percent  of

those surveyed. In fact, due to rolling resistance, tires can have a significant impact on vehicle

fuel economy and the environment in general. 

ß  What is rolling r esistance?

With each rotation of the wheel, the shape of the tire changes slightly under the weight  of the

vehicle as the tire makes  contact with the road. As its structure changes, the tire’s  components 

heat up and some of the energy transmitted by the engine is lost. This is the phenomenon known 

as rolling resistance. Since energy is needed to keep a vehicle moving forward, lowering a tire’s 

rolling resistance makes  it possible to reduce fuel  consumption and,  consequently,  lower

emissions of CO2 and other greenhouse gases. 

Rolling resistance is one of the five forces a vehicle must overcome in order to keep moving. The

others are: 1) air resistance (which depends on vehicle speed), 2) significant inertia forces when 

accelerating  (such  as  in  city  driving),  3) gravity when  driving  uphill,  and  4) internal friction 

(involving the transmission, for example). 

ß Visible differences in performance

When it  comes  to rolling r esistance,  all tir es  are not  equal,  with  differ ences  of  up to  50 

per cent on tir es designed to equip the same vehicle. To  highlight  these differences, Michelin  demonstrated,  at  the 62nd  Frankfurt Auto  Show  in 

September 2007, the phenomenon of rolling resistance and its impact on fuel consumption to the

public. The test involved  a concave 72­foot  track  and two Peugeot 308s automobiles that were

1 Survey of 5,061 Web users age 18 to 65 conducted online by Michelin and LH1 2 from Feb. 27 to March 

10, 2006. The sample comprised 1,061 French, 1,000 Chinese, 1,000 Japanese, 1,000 Americans and 1,000 

Germans using the quota method of sampling.
6 

identical except for their tires. One was fitted with Michelin Energy Saver tires and the other with 

tires whose rolling  resistance was  the same as the market average

2  (see illustration  above).  Released from a height  of 10.5 feet  on  a 20  degree slope, the two  vehicles rolled forward  and 

backward,  propelled only by their weight. The car equipped with Michelin Energy Saver tires, 

which offer less rolling resistance, continued to move significantly longer than the other vehicle.  This illustrates that the car requires less energy to cover the same distance as another equipped 

with different tires, because of the benefits provided by Michelin Energy Saver tires. 

2 ISO test conducted by TÜV SÜD Automotive in 2007 on a representative market sample of 195/65R15 

and 205/55 R16 tires.
7 

II. Michelin’s environmental commitment:  Helping to lower CO2 emissions 

1. Lowering CO2  emissions: A priority for Michelin’s research  and development teams

An aggressive commitment to reducing tire energy consumption has guided Michelin throughout 

its history. The increasing importance of this challenge is illustrated by the fact that the world’s 

current  estimated  830 million  vehicles,  which  are responsible for 18  percent  of global  CO2 

emissions 3 ,  are expected  to  double by  2030 4 .  With its  green  energy saving  tires,  Michelin  is 

demonstrating  its  concern  for preserving energy resources. This is particularly critical since at 

current consumption levels, at least one major authority believes that the world’s easily accessible 

oil reserves could be depleted in an estimated 31 years 

5 . 

A  commitment  to reducing  the  environmental  impact  and fuel  consumption  of  tir es  is  a  guiding principle at Michelin 

1946: The invention of the radial tire improved  performance in  a number of different  areas, 

among them rolling resistance. This led to a reduction in fuel consumption. 

3 Source: International Energy Agency  4 Source: World Business Council for Sustainable Development, a Geneva­based association of 170 

international corporations committed to supporting sustainable development  5 Source: France’s Ministry of the Economy, Finance and Industry 

Silica tires 

lbs./ton
8 

1992: Launch  of Michelin green  energy saving tires, which  integrated silica in the tread as a

partial substitute for carbon black. Silica helps to lower rolling resistance without compromising 

performance in traction, grip (especially on wet surfaces) and tread life. This innovation made a  significant impr ovement in r educing the energy needed to keep a vehicle moving, enabling a 

r eduction in fuel consumption of .06 gal/1,000 miles. That’s why the “Michelin green energy 

saving tires” name was chosen—to underscore the dual advantage in terms of fuel savings  and 

lower CO2 emissions. 

Today, further advances are still possible. Resear chers at Michelin believe that significant  additional r eductions in r olling r esistance, up to 50 per cent, ar e possible within the next 10 

to  15  years—a  technical  challenge to  which Michelin  is r esponding with special research  programs. Michelin has focused  on rolling resistance because,  contrary to  common belief,  a  tir e  has its 

gr eatest environmental impact—up to 86 percent —when it is in use on the road, not during 

manufacture or disposal. The illustration below shows  the environmental impact  of a tire

throughout its life.

Source: May 2001 study conducted by Préc Consultant B.V

* Banned in Europe since 2006
9 

2.  Environmentally  friendlier  cars,  thanks  to  Michelin  green  energy saving tires

In  15  years, Michelin  has developed  no fewer than four generations  of Michelin  green energy 

saving tires,  clear proof of the importance given  to  protecting the environment and preserving 

energy resources. 

ß  Thr ee out of four Michelin car tir es sold in Eur ope ar e  green energy saving 

tir es

More than 570 million Michelin green energy saving tires have been sold worldwide since 1992.  The environmental impact has been  considerable, given that for car tires alone this represents a  gain of mor e than 1.7 billion gallons of fuel and a r eduction of more than 17.6 million tons 

of CO2, the equivalent of what is absorbed by 650 million trees in a year. 

The latest addition to the Michelin green energy saving tires lineup was unveiled to the public at 

the 62nd Frankfurt Auto Show this past September. Called the Michelin Energy Saver, the new 

tir e makes further significant improvements in  a car’s energy balance and  environmental 

impact,  r educing  fuel  consumption  by  nearly  0.2  liter  per  100  km  and  reducing  CO2 

emissions  by  almost  4 g/km. These represent considerable cost benefits,  enabling motorists to 

save nearly €2 € every time they fill up (for a diesel­powered vehicle with a 50­liter fuel tank that 

consumes roughly 6 l/ 100 km, and based on an average price of €1.20 € per liter). 

Compared with the market average

6 , the gains delivered by the Michelin Energy Saver tire are

considerable—not only for drivers but also for the environment, when viewed in terms of the total 

number of cars on the road and total distances traveled. During the entire life of a vehicle, this is

close to one ton of CO2  not r eleased into the atmosphere, equivalent to the amount absorbed by 

40 trees in a year. 

ß  Reconciling environmental protection, safety and road performance

The challenge to  which  Michelin  is responding  is to  design  tires  that help  reduce fuel 

consumption while maintaining the same high performance levels in other areas. In this respect, 

the Michelin Energy Saver tire—the fourth generation of Michelin green energy saving tire since

1992—represents a synthesis of all of Michelin’s skills and expertise. Fuel savings are combined 

with superior grip and safety, as well as the best total mileage in the market. 

6 ISO test  conducted  by TÜV SÜD Automotive in 2007 on a representative market sample of 195/65R15 

and 205/55 R16 tires.
10 

ß  Michelin green energy saving tir es provide automotive manufacturers with  key advantages in meeting futur e Eur opean envir onmental standar ds

The European Commission  has reaffirmed its determination “to address  energy efficiency and 

CO2  emissions  from  cars.”7  In  its  “January 2007  package on  energy and climate”,  the  commission  emphasized that  “further measur es to tackle  automobile CO2  emissions fr om  cars  will  be  outlined  (...)  in  order  to  r each  thr ough  a  compr ehensive  and  consistent  approach the target of 120 g CO2/km by 2012.” In mid­2008, the commission will suggest a

legislative framework to the European Parliament in order to achieve this objective. 

This will be no easy task.  Over the next four years,  European  carmakers must achieve  a 

r eduction of 20 g/km in the average level of CO2  emissions for all their models, from 140 g/km 

in 2008 to 120 g/km in 2012. That’s where the Michelin Energy Saver tire can play a crucial 

role, since the tir e alone can achieve one­fifth of that goal without any other changes being 

made in today’s European vehicles. For carmakers, this represents a “plug and play” solution. 

The technology deployed by Michelin not only reduces the vehicle’s environmental impact but 

also  achieves  economies of scale for car makers, which are supported  by Michelin during  the

automotive design phase in finding environmental protection solutions. This approach is reflected 

in  the partnership between  Michelin and  Peugeot during  the development  of the Peugeot  308 

automobile. The Michelin Energy Saver tire contributes to the low fuel consumption of vehicle

models fitted with 90hp and 110hp HDi engines. 

ß  Michelin green energy saving tir es continue to deliver value to the passenger  car and light tr uck mar ket in North America

In  the United  States, where Corporate Average Fuel Economy  (CAFE) standards have been 

enforced by the National Highway Traffic & Safety  Administration  (NHTSA) since the mid1970s,  Michelin has  supported  its  vehicle manufacturer customers  in reaching  these CAFE 

standards  by providing low rolling resistance tires  that do  not compromise other key 

performances such as traction and wet handling.  CAFE standards are focused on improving the

fuel economy of passenger vehicles, which in turn lowers CO2 emissions. 

In both original equipment and replacement tires, Michelin offers consumers fuel efficient tires 

that save money and help protect the environment. For example, the recently introduced Michelin 

Latitude Tour HP tire for the fast growing CUV market will save consumers up to $400 in fuel 

costs (at today’s prices)  over the life of their  vehicle and will also reduce the amount  of CO2 

emissions by more than one ton over the same period. 

3. Promoting the creation of energy­efficiency labeling for tires

Michelin is leading the effort to create an energy efficiency index system for car and truck tires, 

similar to  that used by  the automobile  industry  to rate  vehicle fuel  consumption  and CO2 

7 Source: European Union, COM (2006) 545
11 

emissions. In a similar fashion, motorists looking to purchase tires will be able to see at a glance

the energy performance of the tire they are considering. 

Under Michelin’s  leadership, the entire industry in  Europe is working  to make this project a

reality, reflecting a commitment to inform consumers that tires perform very differently in terms 

of rolling resistance and, consequently, environmental impact. These differences may be as much 

as 50 percent for different tire brands produced for the same car. For a car at 40 mpg, a difference

of more than 50 percent in rolling resistance can improve fuel consumption by up to 4 mpg and 

lower CO2  emissions by up to 10 percent. The classification planned for Europe will range from 

an A rating for tires with the best energy performance to  a low rating (not yet defined) for the

least efficient. Tires that fall below the lowest rating will not be allowed for sale in Europe. The  system should be provided in Eur ope beginning in 2011.

In  the United  States, Michelin is aggressively supporting rolling  resistance legislation  pending 

before the U.S.  Congress  that  would  require the NHTSA, in consultation  with  the U.S.  Environmental  Protection  Agency  (EPA),  to  devise and implement a consumer information 

program to give consumers for the first time the ability to know and compare rolling resistance

performance characteristics  at the point  of sale. Similar to the EU  effort, this rolling resistance

information translates  directly into fuel economy and will allow consumers to choose the most

fuel efficient tires for their vehicles. 

Michelin is also actively working with the state of California to implement regulations to fulfill

Assembly Bill 844 (AB844), already passed into law by the state legislature, requiring a rolling 

resistance grading system for tires sold in the state. This  consumer information system  could  be in place in the state of California as early as 2009.

Michelin’s efforts to introduce energy efficiency labeling are motivated by the benefits it would 

provide to consumers as well as by the company’s commitment to protect the environment. This

can  make the consumer’s choice of replacement  tires an act of responsible environmental 

stewardship, since in addition to providing overall fuel cost savings, 

low rolling  resistance tires also  lower the CO2  emissions that 

contribute to global warming. 

Michelin’s low rolling 

resistance tires for passenger  cars often display a special 

“ Green X”  marking on the  sidewall. 

4. Environmental technologies developed for 

truck tires

For commercial  trucking  fleets, the cost  of fuel  and  tires can 

represent more than  25 percent of total operating costs. This accounts for millions of dollars
12 

each year that translate into higher shipping and retail costs for each of us. This is why Michelin 

transferred its  low rolling­resistance technology,  introduced in  1992 for passenger car tires, to 

truck tires in 1994.  While the average passenger car in North America travels approximately 12,000 miles a year, a

long­haul truck can rack up the same  number of miles  each  month.  And,  one fleet can have

hundreds or even thousands of vehicles – resulting in millions of dollars in fuel and tire costs.  At 

the same time, energy costs are at historic highs. Diesel fuel has more than doubled in the United 

States over the last five years and has increased in Europe by 40 percent over the same period. 

Fuel is second only to labor costs for trucking fleets.  With these factors in mind, tire performance

and fuel economy are not only major environmental concerns but also major financial issues for

the trucking industry. The right tire choice can be the difference in the profitability of a trucking 

company. 

European trucking company expenses

Source: French National Road Haulage Committee (CNR) – 2006 

ß  Michelin green energy saving truck tires

Since each axle has its  own special requirements, Michelin  green energy saving tires  in North 

America comprise three major types:

­ Steer axle: Michelin XZA­1+, XZA2 and XZA3 tires 

­ Drive axle: Michelin XDA Ener gy, XDA3 and X One XDA tires 

­ Trailer axle: Michelin XTA Energy, XT­1 and X One XTA tires  ß  Delivering economic and environmental benefits in Eur ope 

Because they reduce fuel  consumption  by  approximately two  liters  per 100 km,  Michelin  Energy  tir es  provide  European  trucking  companies  with  a  considerable  advantage. If

consumption is reduced by one liter per 100 km through the entire life of the tire, this translates in 

to  a savings of 60,000 l/year—for a fleet  of 50 trucks each  covering  120,000 km/year—or

€54,000 € based on a price of €0.90 € for a liter of diesel fuel*. And in addition to the financial
13 

benefit for trucking companies, lowering fuel consumption reduces the industry’s impact on the

environment. Each liter of diesel fuel saved corresponds to 2.66 kg of CO2  not released into the

atmosphere. That’s why European legislation now recognizes that tires play a significant role in 

helping to reduce emissions of harmful pollutants and greenhouse gases.

Source: The Michelin Challenge 

ß  The Michelin X One r evolution in North America

Launched at the end of 2000, the Michelin X One tire replaces dual tires on commercial vehicles 

in North America with one wide­based single tire, effectively turning  18­wheelers into 

10­wheelers. By comparison, Michelin X One tires will improve the vehicle’s fuel economy by 

around 4 percent and can reduce the weight of a tractor­trailer by as much as 720 pounds.  The

weight savings allows vehicles to increase their payload, which  in turn means fewer trucks are

needed to carry the same amount of freight, thus reducing road congestion. 

A single long­haul truck, fitted with Michelin X One tires, can save up to 80 gallons of fuel each 

month, which  at today’s prices  can save each tractor­trailer more than  $200 per month in fuel 

costs. This gives  large national  fleets the ability  to  lower their CO2  emissions  while  saving 

millions of dollars in fuel costs each year. 

In the seven years since Michelin  launched the X One revolution, these wide single tires have

collectively saved  an  estimated 15 million  gallons of fuel  and reduced CO2  emissions by more

than 165 thousand tons. 

And the demand for Michelin X One tires continues to grow, converting more than 1,000 vehicles 

each month in North America. This is a great example of Michelin Durable Technology research 

delivering a product that is both environmentally conscious and economically advantageous. 

ß  Pr oven at The Challenge

To demonstrate the benefits delivered by its Energy truck tires, Michelin organized an impartially 

supervised real­life test in September 2006. 

Two identical trucks left Michelin’s Ladoux Research Center near Clermont­Ferrand, France on 

Sept. 25, 2006 for the IAA Motor Show in Hanover, Germany, where they arrived the following 

day. Both trucks covered the same distance of 777 miles, following the same itinerary, traveling 

at the same speed and carrying the same load. The only difference was the tires; the first being 

equipped with new Michelin E2+ tires and the second with new Michelin A2 Energy low rolling 

resistance tires. The Michelin A2 Energy tires resulted in a fuel savings of 7.6 gallons compared 

to  the Michelin  E2+ tires,  an  average increase of .35 miles per gallon  (mpg) for a truck  that 

averages 6 mpg. 

The table below  shows the average gains  observed  during  a tire’s  first life (3  percent fuel 

economy) obtained in actual driving conditions by a fleet with 100 trucks. 

Diesel fuel price $2.95 per gallon*
14 

Fuel savings thanks to Michelin X One tires  3 percent**  Number of tr ucks in the fleet (example) 100 

Average distance traveled by each truck  120,000 miles 

Average curr ent fuel economy 6 mpg  Annual savings for a fleet of 50 trucks  $177,000 

Savings in terms of tir es  420 new steer tir es per year***

* Sept. 2007 reported by the U.S. Dept. of Energy.  **New Michelin XOne tires have a 4 percent fuel economy advantage over dual tires. While the X One mainta ins an  advantage over duals throughout its life, the advantage is more substantial when the tires are new. Therefore, the  overa ll fuel savings have been reduced to 3 percent for ca lcula tion.  ***Based on an estima ted replacement tire price of $420 per steer tire

Fuel savings also means a reduced environmental impact, since each gallon of diesel fuel saved 

represents 22.3 pounds of CO2  not released into the atmosphere. For the table above, this results 

in a r eduction in CO2  emissions of ar ound 223 tons. 

ß  Fuel savings and lower CO2 emissions thanks to Michelin r etreading

In  addition to  the benefits provided by low rolling  resistance technology,  Michelin truck tires 

offer other advantages that  reduce fuel  consumption  and  CO2  emissions. Their  architecture is

designed so that each tire has multiple  lives—the first with the new  tire, followed  by multiple 

retreads through Michelin Retread Technologies (MRT).  Michelin retreading  delivers performance comparable to Michelin new tires  and  also  helps 

preserve raw materials. That’s because the amount of material needed to retread a tire is only 20 

percent to  30 percent  of what is needed to  manufacture a new tire, since much of the original 

materials are reused. 

ß  Reducing fuel consumption thanks to Michelin’s advice and expertise

Fuel  efficiency  can  be improved if tires are used  and maintained  properly.  Michelin  has  more

than 1,300 experts who travel across Europe and North America, visiting truck users and helping 

them to  optimize their fleets and  choose, maintain and manage their tires to achieve maximum 

fuel savings. They also train dealers who then in turn  can better serve users by helping them to 

get the most out of Michelin products. 

In Europe: 

Intended for large trucking companies in Europe, the Michelin Fleet Solutions offering deploys a

unique business  model that invoices customers  not  on tires  purchased but  on distances driven, 

again with the goal of optimizing a tire’s multiple lives and, in particular, achieving greater fuel 

savings. For its European trucking company  customers, Michelin recently introduced  an online

calculator (www.michelintransport.com/economiedecarburant) enabling  them  to  determine

simulated gains depending on their fleet size.
15 

In North America: 

Michelin also offers an online fuel savings calculator for North American fleets that allows them 

to calculate the savings of specifying Michelin green energy saving tires. This calculator can be

found at www.michelintruck.com.
16 

III. Michelin’s worldwide commitment to better mobility

"Will we be able to  find solutions  that  enable us  to develop mobility  while reducing  the

disadvantages?" asks WBCSD 8  President Bjorn  Stigson. As a major mobility  player, Michelin 

has responded with a commitment to better mobility, meaning that it is sustainable for the planet 

and society over the long term. To fulfill this commitment, the company is backed by a culture of

performance and responsibility that has been deployed across the organization, on all continents 

and in all host countries. 

1. Five core values

Since a responsible enterprise that  is committed  to sustainable development must assess  the

negative effects of its operations in order to reduce them, Michelin develops its high­performance

products from  a foundation of core values.  This strategy  is apparent at each  stage of the

manufacturing process. Respect for customers, people, shareholders, the environment and facts 

are the values that will ensure Michelin’s responsible, long­term growth. 

2.  Michelin  Performance  and  Responsibility:  Creating  the 

conditions for the company’s responsible, long­term growth

Michelin’s growth is driven by performance, both technical, which enables people to drive safely 

on our tires,  and  financial,  which  underpins the company’s long­term viability. Michelin  is

dedicated  to constantly improving  its  performance in  both  of these areas  by assuming its 

r esponsibilities with regard to the long­term impact of its products and activities on people and 

the environment. 

Introduced in  2002 under the guidance of Edouard Michelin, the Michelin  Performance and 

Responsibility process is designed to put into practice the company’s five core values. To enable 

this approach, the Michelin Performance and Responsibility Charter was published in 2003. This 

40­page document has been translated into  15 languages and distributed to all Michelin 

managers worldwide.  Michelin Performance and Responsibility is built on a number of cornerstones: · Pursuing a long­standing commitment to operating responsibly. · Analyzing  the challenges  with  regard to  better mobility programs and Michelin’s overall 

performance as a global, market­leading enterprise. · Identifying the expectations of different stakeholder groups, including customers, employees 

and shareholders. 

8 World Business Council for Sustainable Development, a Geneva­based association of 170 

international corporations committed to supporting sustainable development
17

· Measuring impact and monitoring performance through specific indicators that, for example,  calculate workplace accident frequency and severity data or the percentage of tires produced 

in plants certified to ISO 14001 environmental management standards. · Complying with local  legislation in all  host countries and,  in  some cases,  adopting 

international norms for more demanding standards in specific situations. · Reporting progress to internal and external stakeholders on a regular basis. 

3. The Challenge Bibendum: Bringing together mobility  stakeholders

In 1998, Bibendum, the world­famous Michelin man, celebrated his 100th birthday. To mark this

historic milestone, Michelin created an event that would spotlight the technical progress made by 

vehicle manufacturers in  developing  environmentally  friendly vehicles, proven  in real­world 

conditions. The result was the first Challenge Bibendum, a friendly competition that ran from 

Clermont­Ferrand,  France,  the site of the Michelin  Group’s worldwide headquarters,  to the

Champs­Elysées in Paris. 

The Challenge Bibendum  is designed to  spotlight  the  most  significant  advances  in  better  mobility. The idea behind  the event is simple: to help people understand  the technologies 

involved through practical demonstrations; and, to see how each technology fits into the overall

picture. The approach used is equally direct: give today’s opinion leaders, decision­makers and 

media a clear, impartial, credible view of how the “state­of­the­art” in science and technology can 

pave the way to  the development  of sustainable  mobility  solutions. A  real commitment to 

progress in this crucial area will require decisions impacting all of society. Ultimately, everyone

has a role to play, whether government, industry or consumers. 

The Challenge Bibendum  was created to show  that the automobile industry is working toward 

better mobility, and that it already has some of the technologies needed to reduce pollution and 

improve safety, without compromising mobility. 

Substantial progress has been made in some areas in recent decades. For example,  100 passenger

cars  in 2003 generated  less pollution  than  a single car back in  1975.  But the most effective

solutions need to  be brought to  market  faster,  and  the Challenge Bibendum  is one way  of

assessing and publicizing those solutions. 

2000: the second Challenge Bibendum is held in Clermont­Ferrand, France

Beginning the following year, the event becomes annual and more international in scope.  2001: Based in California, on the West Coast of the United States and including with a rally from 

Los Angeles, Calif. to Las Vegas, Nev.  2002: Returning to Europe, starting in Heidelberg, Germany and heading to Paris, by way of the

European Parliament in Strasbourg.  2003: Back to California, this time in the Sonoma Valley and San Francisco.  2004: Eastward bound, more precisely to Shanghai, China.  2005: Once more to the East, to Japan, with the Bibendum Forum & Rally, an event developed 

from the Challenge Bibendum.
18 

2006: Paris again plays host to the major mobility stakeholders for an update on new advances 

towards sustainable mobility.  2007: Scheduled to take place Nov. 15­17 in Shanghai.
19 

Appendix 1 

Calculation methodology 

Quantifying the contribution of Michelin gr een energy saving tires to fuel savings and lower  CO2 emissions.

The methodology*  applied  has been  approved  by the Technical  Authority for Automobiles, 

Motorcycles and Cycles (UTAC). 

The two figures to be determined are: 

­ The amount of fuel saved since the market launch of Michelin green  energy saving tires in 

1992. 

­ The amount of CO2 not released into the atmosphere over the same period.  ÿ  Estimating the amount of fuel saved as of Oct. 30, 2007

The formula consists of aggregating the fuel savings  delivered  by  each Michelin  green 

energy saving tire throughout its lifetime. The calculation involves three steps: 

A) Estimate the fuel savings per 100 km thanks to Michelin green energy saving tires.  This is determined by the difference in rolling resistance between Michelin green energy 

saving tires  and  the market  average of conventional tires  on  the road (as measured by 

Germany’s TÜV SÜD Automotive on a representative market sample of tires, including 

conventional Michelin tires).  Then, the consumption gain, proportional to the difference

of rolling  resistance forces, is calculated  using commercially available simulation 

software common to the automotive industry. 

B) Assess  the distance traveled  with  Michelin  green energy saving tires sold between 

1992 and October 2007.  The total distance traveled* can be calculated by multiplying the average life of the tires 

sold by the number of vehicles equipped with Michelin green energy saving tires. 

C) Calculate the amount of fuel saved.  This is determined by multiplying the gain in consumption per kilometer or mile by the

distance traveled.  ÿ  Transform the fuel savings into CO2 not r eleased into the atmospher e

The estimation of CO2  not released into the atmosphere is proportional to the amount of

fuel saved. The formula used is the following: each liter of fuel consumed results in the

release of 2.5 kg of CO2 into the atmosphere.

*45,000 km, ba sed on calculations made on a ll tires in the representative market sample. 

ÿ  Measuring the gains second by second
20 

The second­by­second gain  (in  terms of fuel saved and  CO2  not  released into  the

atmosphere) is calculated from  the gains measured  between Oct.  1 and Oct. 30, 2007,  divided by 30 (days) then by 24 (hours), and lastly by 3,600 (seconds). 

ÿ  Calculation variables

The methodology is the same for car tires and truck tires, although calculations are based 

on the number of vehicles equipped with Michelin green energy saving tires for cars and 

on the number of axles fitted with Michelin green energy saving tires for trucks. 

ÿ  Additional information on the calculations & data

Additional  information  on  Michelin green  energy saving tires,  including more in­depth 

information  on  the calculations and data  can be found online at:  www.michelin­greenmeter.com.
21 

Appendix 2:

Mobility challenges of the future

To promote and support discussions about sustainable mobility, Michelin, along with other  global companies from the tr ansportation industry, took part in the Sustainable Mobility 

Project organized by the World Business Council for Sustainable Development (WBCSD).  The goal was to take an inventory of mobility initiatives around the world, to analyze the  challenges ahead and to determine futur e objectives to meet those challenges.

A key driver of economic and social development, road transport of people and merchandise has 

been steadily increasing for decades. Today, more than 80 percent of all transportation of people 

is on roads. Between 1950 and 2003, the total number of road vehicles worldwide increased from 

50 million to more than 830 million. According to WBCSD 9  estimates, this figure will double by 

2030, while distances traveled to transport people are expected to increase by nearly 80 percent 

between  1995 and 2020.  This increase in  people mobility will  be particularly  dramatic in 

emerging countries such as China and Latin American countries, with certain studies forecasting 

average annual growth of 3 percent for the period 2000­2030. 

Behind these figures, however, access to  mobility varies greatly from one region to another.  According to the WBCSD, the average annual distance traveled by an American in 2000 was 12 

times greater than that traveled by an African. More than  75 percent of all motor vehicles are

found in developed countries and access to mobility remains a problem for the disadvantaged, the

elderly and the handicapped. 

The increase in road traffic has created major problems for today’s society in three areas: 

­  A significant rise in the number of r oad accidents, which result in 50 million injuries and 

1.2 million deaths every year. Of the total, more than 85 percent are in developing countries 

where the situation is getting worse, while it has stabilized in developed  countries (source: 

Organization for Economic Cooperation and  Development).  In  developing  countries,  road 

accident victims are mainly pedestrians or cyclists,  while in  industrialized  countries most

casualties are motorists. 

­  An  incr ease in the  environmental  impact of pollutants  at the local level, such  as carbon 

monoxide,  nitrogen  oxides and  volatile organic compounds, as well as greenhouse gasses 

such as CO2 that cause global warming. According to the International Energy Agency (IEA), 

transportation accounts for 26 percent of all CO2  emissions. Another illustrative figure is that 

transportation  accounts  for roughly  65  percent  of all  oil consumption  in  industrialized 

countries. The IEA forecasts that oil consumption to meet transportation needs could double 

in the next 25 to 30 years. Lastly, another area of concern is reducing noise levels, especially 

in urban and suburban areas. 

­  Tr affic flows. According to the World Bank, more than 50 percent of the global population 

will live in urban areas by 2008, compared with less than 30 percent in 1950. In developing 

9 World Business Council for Sustainable Development, a Geneva­based association of 170 international 

corporations committed to supporting sustainable development
22 

countries, this rapid  urban growth is not always supported by infrastructure improvements, 

leading to chronic congestion on road arteries.