Innovation has always been the path Michelin has found to stand out in the global market. Founded in 1889 in France by brothers Édouard and André Michelin, the company started as a small rubber factory producing items such as balls and brakes for carriages. Over time, it transformed into one of the largest tire manufacturers in the world—but it did not limit itself to rubber.

Part of the company's growth strategy was precisely to look beyond its "core business." In 1900, the founders had the idea to make life easier for drivers and travelers by creating a guide that included maps, tire repair shops, gas stations, and, for stops, recommendations for restaurants and hotels—directly encouraging the use of tires.

This is how the "Michelin Guide" was born, as we know it today. In 1926, it began evaluating restaurants and awarding stars to the best establishments. The initiative worked so well for the company that the guide became a "business line" for Michelin, which they call Lifestyle. The tire company established itself in 63 countries and reached a global revenue of €27 billion in 2024.

This year's two innovations: hotels and maritime

This year, the Michelin Guide celebrates its 125th anniversary, and the company will continue to innovate beyond tires, according to Hervé Le Gavrian, president of Michelin South America.

Premium hospitality: On October 8, Michelin will globally launch the "Michelin Keys," a selection that will award hotels with the same rigor as the traditional Michelin Stars. "We are going beyond tire production and culinary experiences," says the CEO.

Maritime transport: The company’s key markets include sectors such as trucks, mining, motorcycles, and aviation. However, it will broaden its focus to new business ventures with the Wisamo project, an inflatable sail that uses wind energy to reduce CO₂ emissions in global maritime freight transportation.

“We want to make a significant contribution to the decarbonization of the sector,” says the CEO. “We will start testing the sail in Europe, but we are looking at the whole world. We are even present at maritime transport fairs in Brazil to present this innovation.”

In his first press interview since becoming president of Michelin in South America in March 2024, Gavrian shared exclusively with EXAME the company’s plans for the region. The French executive has more than 30 years of experience with the group, having worked in production, finance, and even human resources before becoming president of South America.

“The energy of the organization comes from the people. Our focus is on three 'P’s: People x Planet x Financial Performance. None of these elements can be zero,” says the president.

Regional expansion and innovation with sustainability

In South America, Michelin has eight factories in Brazil that produce everything from passenger tires to digital components for connected fleets.

“Our operation here demonstrates Michelin's strength in the country and how strategic Brazil is for us,” says the executive directly from the headquarters in Rio de Janeiro.

In southern Bahia, the company maintains the Michelin Ecological Reserve, which just celebrated its 20th anniversary, and participates in the "Together for the Amazon" initiative. “With this project, we have managed to protect 145,000 hectares of forest while ensuring income for the families who rely on extractivism,” says Gavrian.

Outside Brazil, the plans are also ambitious. The president also foresees new operations in Peru, where, still in 2025, it will launch a tire recycling unit for mining tires in partnership with local companies.

“We continue to expand our presence in the region with sustainable initiatives. We already have a mining tire recycling plant in operation in Chile, and now we will have one in Peru as well,” says the president.

On the global industrial front, one solution the company developed is the use of rice husks as a substitute for silica in truck tires, which reduces fuel consumption by up to 9% for fleets.

According to the president, these initiatives are part of Michelin's global ambition to achieve 100% recyclable tires and tires made with renewable materials by 2050.

The manufacturing unit, located in the Campo Grande neighborhood, Rio de Janeiro, is one of the five largest Michelin plants worldwide.

Prospects and challenges

Hervé also highlights the investment in human capital: globally, US$240 million is invested annually in training, with more than 55,000 online modules available. In Brazil, 46% of employees have been with the company for five or more years, and 20% have been with the company for over 15 years.

“Our challenge is to maintain social cohesion in an increasingly volatile world. This can only be achieved through inclusion, diversity, and innovation,” said the CEO, noting that half of the leadership team in Brazil is made up of women.

Among the main challenges for the South American operation are regulatory pressures and economic volatility. In Brazil, for example, the company announced the gradual closure of its Guarulhos factory by the end of 2025. The priority, according to the CEO, is to offer individualized support to each employee through a social package that was negotiated with the union.

The decision, according to the executive, was made as a last resort and is a consequence of the overproduction capacity generated by the influx of imported products that often arrive in the country at a cost below production. The unit still primarily produces inner tubes for motorcycle and bicycle tires, industrial tires, and semifinished products.

Still, the company maintains its growth ambitions for the coming years. Michelin estimates that segment operating income will reach €4.2 billion in 2026, compared to about €3.6 billion in 2023.

The text was translated with artificial intelligence. If you have any questions or corrections, please write to rafael.balago (at) exame.com.