Pirelli's N.Y. office is a 'major step,' Ludwig says
"I note with interest Pirelli Tire North America’s move to establish a sales and marketing office in New York while keeping its U.S. headquarters in Rome, Ga.," says Saul Ludwig in the latest installment of the "Ludwig Report" in Modern Tire Dealer magazine.
"This signals to me the coming of much more aggressive program to grow its high-end/performance tire sales in the U.S. as Pirelli might now have only a 2% share of the replacement market in the U.S.,” Ludwig says.
“I do not see a major expansion of tire production in Rome, Ga., so any growth in units sold would likely be supplied with imported tires – 100% under the Pirelli brand.
“I also expect the New York office to be the base of a more intense focus on tangential fashion products as well as a more active program toward the financial community," he says.
"This decision to set up a new office in New York is a major step for them.”
Ludwig is a managing director with Northcoast Research Holdings LLC based in Cleveland, Ohio. He concentrates on the tire and chemical industries. Look for the full "Ludwig Report" in each issue of Modern Tire Dealer magazine.