Tire makers invest heavily in R&D

This article was published by the Taiwan Headlines on April 10, 2006. It reports that tire manufacturers around the world are investing heavily on research and development in order to meet the global demand for high-performance tires.

For example, in 2006, France's Michelin will devote US$800 million, or 4.5 percent of its total sales, to research and development. The company will increase funding in this area in the future, in order to focus on the production of high-performance tires that feature quietness, comfort and safety. The company will further expand its research and development to include shock absorber and chassis design.

Meanwhile, Cheng Shih, Taiwan's largest tire manufacturer, has also announced its plan to appropriate over NT$1 billion (US$30.76 million), or 3 percent of its total sales, on research and development in 2006. The company inaugurated a research and development center in China's Jiangsu Province at the end of 2005. Now, it plans to complete the construction of two other research and development centers in Taiwan and the United States in 2006.