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When it comes to Michelin, the first image that springs to mind is not just a brand, but a tireless figure—Michelin Tire. For over a century, this iconic character has become synonymous with the brand, serving as its ambassador and symbol of innovation. His presence has helped shape Michelin into a globally recognized name in the automotive industry.
In 1995, Michelin took a significant step by establishing a joint venture in Shenyang, marking the formal entry of Michelin Tires into China. This was followed by the creation of several subsidiaries, including Michelin Shenyang Truck Tire Co., Ltd., Michelin Light Truck Sedan Co., Ltd., and Michelin Shenyang Rubber Components Co., Ltd. These developments allowed Michelin to gradually expand its production capabilities in the Chinese market, adapting to the growing demand for high-quality tires across different vehicle types.
In April 2001, Michelin made another strategic move by investing $200 million in a joint venture with Shanghai Tire & Rubber Co., Ltd. to launch Shanghai Michelin Warrior Tire Co., Ltd. This partnership enabled Michelin to implement a multi-brand strategy in China, introducing both the Michelin and Warrior brands. While Michelin focused on the premium segment, Warrior targeted the mass market. Additionally, after acquiring the American company Bauluche, Michelin introduced Bauluche tires to younger drivers seeking performance and excitement.
Over the course of a decade, Michelin built a comprehensive industrial footprint across China, from north to south. It covered a wide range of vehicles—from sedans to trucks—meeting the diverse needs of the Chinese market. The company also expanded its sales network and strengthened partnerships with car manufacturers, actively building a robust business ecosystem.
**Active Tire Technology**
At the heart of Michelin’s success lies its commitment to product innovation. The company has a long history of pioneering advancements, such as the first car tires, train tires, and truck tires. In 1906, it introduced the first detachable tire, and later integrated inner tubes into tire design, becoming a pioneer in tubeless technology. Michelin also launched the first snow tires with self-sharpening treads and developed radial tires for aircraft and motorcycles.
In China, Michelin continued to innovate. In 2003, it introduced the EnergyMX V8 specifically for luxury cars, showcasing its dedication to quality and performance.
As the world moved into the post-oil era, Michelin adapted by strengthening partnerships with automakers and driving technological innovation. At the 2008 Paris Motor Show, Michelin, in collaboration with French electric car manufacturer Heuliez and telecom giant Orange, unveiled WILL—a groundbreaking electric vehicle integrating Michelin’s Active Wheel technology. This system incorporated motors, suspension, and braking directly into the wheels, revolutionizing vehicle design.
The integration of key components allowed designers to break free from traditional constraints. By removing the engine assembly, the vehicle became lighter, enabling Heuliez to redesign the chassis for improved efficiency.
Lighter vehicles mean lower energy consumption. WILL achieved an impressive energy efficiency of 90%, far surpassing the 20% efficiency of conventional city cars. When powered by clean energy sources like hydropower or wind, WILL’s well-to-wheel emissions were under 15 grams per kilometer.
WILL was expected to launch in 2010, and Michelin continued to explore collaborations with domestic battery manufacturers and suppliers like CITIC Guoan Mengguli. The power system would feature Michelin’s drive-wheel technology and lithium batteries from Nugget, with a jointly developed electronic control system.
**Pyramid Service Network**
The value of a product is only fully realized through a strong ecosystem. Michelin has built one of the most extensive tire retail networks in China. By the end of 2007, it had over 3,500 retailers for car and light truck tires, and more than 1,800 for truck and commercial vehicles.
Michelin's service structure follows a pyramid model. At the base are Michelin-approved dealers, followed by MCR (Michelin Certified Retailers), which offer larger storefronts and enhanced services. At the top are Tyreplus stores, providing premium experiences. In China, Michelin operates over 500 Chijia stores, known for their vibrant blue and green designs and bold yellow tire motifs. These stores are well-organized, spacious, and staffed by uniformed professionals who deliver consistent, high-quality service.
Beyond its retail network, Michelin collaborates closely with automakers. This includes training technicians at 4S shops to ensure proper tire maintenance and knowledge sharing.
China’s tire market is highly competitive, with Michelin facing global giants like Goodyear and Bridgestone, as well as numerous domestic competitors. According to Xia Yifu, Chairman of Michelin (China) Investment Co., Ltd., future competition will likely focus more on service offerings.
Service plays a crucial role in consumer appeal, and Michelin has leveraged this through its sales channels. In March 2006, it launched the “Along with You†service, offering 24/7 roadside assistance, free tire repairs, and professional maintenance. Nielsen’s 2007 survey showed that Michelin’s after-sales service ranked first, with 48% satisfaction, and consumer interest in Michelin tires increased by 39% after learning about the service. Another third-party survey reported an 89% satisfaction rate among members.
By 2008, the “Along with You†membership had surpassed 500,000, covering 200 cities with around 2,000 authorized retailers. In March 2007, Michelin launched the “Michelin Card and Bus Specialty Store†project, combining sales, consulting, and service. In June 2008, it introduced the “Military Carefree Bus and Passenger Car Club†initiative, further expanding its customer engagement.
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