Bridgestone will exclusively supply tires jointly developed for EV emerging light year in the Netherlands
Bridgestone aims to create new business opportunities by joining hands with the emergence of electric vehicles (EVs) one after another. The EV shift has the potential to significantly change the power of the global automobile industry, with Tesla, Inc., which has been in business for less than 20 years, climbing to the top of the world. Where is the "golden egg" that follows Tesla? We will build a complementary relationship from tire development to maintenance with emerging EVs that have not yet started mass production, and explore future revenue sources.
"Let's do it with us." In October 2019, about 40 teams from all over the world gathered for a solar-powered EV race sponsored by Bridgestone in Australia. At the party after the event, Shuichi Ishibashi, then Vice Chairman, spoke to a young man. Rex Hofsroot, CEO of Lightyear, a Dutch EV emerging company established in 2016, responded.
Lightyear was aiming to develop a new type of EV that can run over 700 kilometers by installing solar panels on the entire upper part of the car body. The biggest challenge to extend the cruising range is to reduce the weight of the car body. After meeting top leaders in Australia, the two companies immediately set out to develop lightweight, dedicated tires.
Lightening tires
By using Bridgestone's original technology called "Enlighton" that reduces the amount of rubber and other materials used to the utmost limit and reduces resistance, the total weight of the four tires has been reduced by approximately 3.6 kilograms from conventional tires, and the weight has been reduced by approximately 10%. I succeeded in doing it. Bridgestone exclusively supplies tires to the first model "Lightyear One," which Lightyear will begin production in 2010.
Lightening tires
By using Bridgestone's original technology called "Enlighton" that reduces the amount of rubber and other materials used to the utmost limit and reduces resistance, the total weight of the four tires has been reduced by approximately 3.6 kilograms from conventional tires, and the weight has been reduced by approximately 10%. I succeeded in doing it. Bridgestone exclusively supplies tires to the first model "Lightyear One," which Lightyear will begin production in 2010.
The EV industry is evolving rapidly, with Lightyear launching commercial vehicles more than five years after its founding. New entrants aiming for the next Tesla are also one after another in the world. The supremacy of tire manufacturers in the EV era depends on how they can identify growing companies and join hands from an early stage.
In 2009, Bridgestone announced a partnership with Fisker, an emerging US EV. Launched by renowned car designer Henrik Fisker, the company has been the premier and promising "second Tesla." Although it has not yet launched a single model on the market, its market capitalization temporarily reached 1 trillion yen when it was listed on the US New York market in 2020.
Fisker will also provide EV tires, but another pillar of the partnership is collaboration in maintenance services in the European market. "I've been impressed with Bridgestone's offering of innovative products and services for EVs." Fisker, who commented on the alliance, decided to choose Bridgestone because of the company's more than 750 service network in Europe.
Fisker will begin production of the first mass-market sport utility vehicle (SUV) "Ocean" in November 2010. Fisker, which specializes in design and development, does not have its own factory, but is produced by Magna International, a major Canadian car parts company. Furthermore, sales are limited to the Internet and the company does not have a sales network.
There are many emerging EVs that aim for such management without possession. However, after the product is released, the issue is how to provide after-sales services such as charging, inspection, and parts replacement. Fisker has struck a chord with Bridgestone's fine-tuned network of more than 450 stores in France and more than 300 in Germany.
Bridgestone will be responsible for vehicle inspections of EVs introduced by Fisker in the US at German dealers.
Mr. Ishibashi said, "It is a new business model in which EV emerging will use the points of contact with Bridgestone's customers," and intends to extend similar efforts to other companies.
Bridgestone has a network of 2,200 directly managed stores in North America in addition to Europe. There are about 1,100 stores in Japan, including the "Tire Hall," and the store network extends to more than 6,000 worldwide. In September 2009, it also partnered with a Dutch EV box that provides charging services in Europe and North America. We are rushing to support EVs in our base network, such as installing 3500 chargers at European dealers in the next five years.
Bridgestone has been receiving a series of consultations from EV emerging, saying "I want you to take maintenance measures." Unlike dealers, it is rare to have a store network that has car maintenance know-how while being independent of existing car manufacturers. Bridgestone seems to be in talks with an emerging Chinese EV manufacturer that is expanding into Europe.
Bridgestone will expand sales of products equipped with its unique EV tire technology "Enlighton"
In order to expand tire transactions with EV emerging companies that emphasize development speed, it is necessary to renew the way of development so far. It used to take several years to develop tires, but "it will take about a year to develop for emerging EVs" (Mr. Ishibashi). The development period will be shortened by standardizing the technology of the base tires and changing to a form in which only the details are modified according to the customer.
EV tires, which are becoming widespread, are one of the few fields that can appeal to added value. At Enlighton, the price can now be increased by up to 10% compared to general tires. In 2018, it plans to switch to Enlighton for almost all tires for passenger cars. If the current profit level can be maintained, the profit margin of passenger car tires, which is currently over 10%, can be increased to nearly 20%.
However, as rival Michelin France and other companies are focusing on EVs, price competition will be unavoidable in the future. Ten years ago, the highly competitive fuel-efficient tire "Ecopia" was caught up by the Chinese and Koreans, and is now exposed to fierce sales competition.
"Only strong people who can respond to change survive." Mr. Ishibashi says: Bridgestone has supported the foundation of global motorization with tires that have changed from tabi manufacturing. How to flexibly change the business model and customer base in the automobile industry, which is undergoing a major turning point such as the EV shift, is a condition for a strong Bridgestone revival.
