Claudio Zanardo, CEO of Pirelli Tire North America, discusses how continued investment in products, manufacturing and technology will power the company’s growth.
MTD: Can you bring us up to speed on Pirelli Tire North America's business so far in 2025? What have some of the company's accomplishments and challenges been?
Zanardo: The first part of 2025 has been strong for Pirelli Tire North America as we continue reinforcing our position in the premium and high-value tire segments. Our recent product launches - including the Ice Friction in Canada and the Scorpion XTM AT, as well as the fifth generation of the P Zero and the DOT tire P Zero Trofeo Track - are a testament to our commitment to this market and our dedication to meeting the specific needs of North American drivers, building on the momentum of the new products introduced in 2024. These regionally developed products highlight our focus on our product offering for the market. While challenges persist due to evolving market conditions, our business strategy centered on the high-value segment, which continues to grow at a double-digit rate, positions us well for continued success.
MTD: How would you assess the state of the consumer tire market in the U.S.? Is demand up, down, or flat versus last year and what factors are playing into this? What are you hearing from your dealers and distributors?
Zanardo: The consumer tire market in the U.S. is experiencing some fluctuations, with demand varying across segments. Of course, macro-economic factors, such as inflationary pressures and shifts in vehicle sales trends, are influencing buying behaviors. While there has been some softness in the overall replacement market, demand for premium and high-performance tires - particularly 18-inch and above, where we focus - remains strong. Dealers and distributors report that consumers continue to prioritize quality when it comes to tires and there is growing, spontaneous demand for Pirelli products, driven in part by our strong and expanding presence in original equipment.
MTD: Pirelli has continued to invest in its Mexico tire manufacturing plant. In light of recent tariff actions imposed by the Trump administration, will Pirelli continue to invest in its Mexico plant at the rate we've seen and/or could we see Pirelli's MIRS plant in Georgia take on more production of tires for the U.S. market?
Zanardo: In this complex world, we made the strategic decision some time ago to adopt a local-for-local approach, both in sales and supply. A few weeks ago, our global CEO was in Atlanta to initiate discussions on investments aimed at increasing our production capacity in the U.S. This decision is a targeted move to seize growth opportunities in a market that represents 40% of the global high-value segment. While we are planning to expand our industrial footprint in the U.S., our Mexico plant remains strategic, as it is one of our most advanced factories in the world. We are committed to this path because we are convinced that the North American market has even greater potential for growth.
MTD: Pirelli Tire North America has maintained a robust cadence of new product introductions - as seen most recently with the launch of the Scorpion XTM AT, an all-terrain tire that also serves as the first product in Pirelli's new Scorpion XTM range. Can you elaborate on Pirelli's strategy of launching a new line under the Scorpion name, as well as the opportunities that Pirelli sees in the all-terrain, off-road light truck tire segment?
Zanardo: The launch of the Scorpion XTM AT is part of Pirelli's broader strategy to expand in the North American SUV, light truck and all-terrain segments. The Scorpion name is synonymous with versatility and durability and the XTM range builds on this legacy with a focus on extreme conditions and off-road capabilities. With increasing consumer interest in adventure-ready vehicles and off-road performance, we see significant opportunities for growth in this segment. The XTM line is designed to meet the needs of North American drivers who require versatility and durability in diverse driving conditions.
MTD: Pirelli was very proactive in getting into the EV tire segment early and has made developing tires for EV applications - and securing key EV OE fitments - a major priority. Taking into account the recent pull-back in EV manufacturing at some OEMs, what is Pirelli’s long-term forecast for EV-specific tire demand in the U.S.? Will this have an effect on your company's continued development of EV-specific tires?
Zanardo: Pirelli is continuously expanding its portfolio to cover a wide variety of tire needs across different vehicle segments, including electric vehicles, to ensure that we meet the diverse requirements of modern drivers. So we remain committed to the EV market, which continues to grow, and are developing cutting-edge solutions through our Elect range, specifically designed for electric vehicles. Consumers continue to seek EV-specific performance features, such as low rolling resistance, extended range and noise reduction - key attributes of Pirelli Elect tires. We want to ensure we remain the go-to tire brand for electric vehicles, while also maintaining strong focus on tires for internal combustion engine vehicles, with new products being launched and new technologies developed.
MTD: Earlier this year, TireHub LLC announced that it will carry Pirelli products. What advantages does this provide to Pirelli and its dealers?
Zanardo: We are seeing strong demand for Pirelli in the market and our goal is to cover all customer touchpoints - providing dealers with the highest level of service and ensuring product availability in the most premium way. Our distribution partners play a key role in delivering our tires efficiently and effectively, whether it's through car dealerships, retailers or national chains - wherever there’s a Pirelli fan looking for our products.
MTD: Many consumers continue to gravitate to lower-tier, less-expensive tire brands. Has this had any impact on Pirelli's business in North America and if so, how is the company responding? Will Pirelli continue its successful focus on large-diameter (18-inch and up) tires in the U.S.?
Zanardo: While price sensitivity is a factor in the market, Pirelli’s focus remains on the high-value segment, where we continue to see double-digit growth and strong resilience in demand. Our strategy is built on delivering premium performance and technology - attributes that resonate with discerning consumers. We will continue to focus on the 18-inch and above category, reinforcing our leadership in premium and high-performance tires. We are constantly innovating to meet the evolving needs of the market, including the growing demand for extreme SUVs (XTM), electric vehicles (ELECT) and connected solutions.
One of the main drivers of our innovation strategy in North America is the development of the Cyber Tyre, the world’s first integrated hardware and software system capable of collecting data from sensors inside the tires, processing them through Pirelli’s proprietary software and algorithms and communicating in real time with the vehicle’s electronics. This enables the development of new features that are fully integrated with the driving and control systems, enhancing the driving experience and improving safety.
MTD: What can we expect to see from Pirelli Tire North America during the rest of the year?
Zanardo: Pirelli Tire North America is fully focused on expanding its footprint in the region for the remainder of 2025. We are prioritizing the growth of our distribution network, ensuring that our products are more accessible to consumers across the country. In addition, we are dedicated to developing products tailored to the specific needs of North American drivers, with a particular emphasis on all-terrain segment. As part of our strategy, we are also planning local investments to increase production capacity and support our long-term growth in the market.
