Pirelli, the global manufacturer based in Italy, is the world’s sixth largest
tire company and has a historical presence in all areas of the tire market, with
particularly strong leadership in the high-performance automotive sector. In
regard to motorcycles, Pirelli’s market position had been less significant—until
things started to change a few years back.
Difficult market conditions
plagued Pirelli’s Telecom Cables and Systems business, and overall operating
results were being negatively impacted by the Internet recession. With nine
years of industry growth, the motorcycle sector offered a more promising
prospect for making meaningful investments. To increase market share, Pirelli
needed to improve many aspects of the business, including market presence,
product development and global operating efficiencies. Dunlop and Michelin
dominance were not going to make this easy.
 Chris Vermeulen on the Ten Kate Honda 1000RR tests the grip of his Pirelli
tires. (Click image to enlarge)
With an interest in
production-based racing to accelerate consumer tire development, Pirelli began
supporting a few World Supersport and World Superbike teams. Frenchman Fabien
Foret’s 2002 World Supersport Championship on Pirellis fueled the wheels already
in motion, and the industry started to take notice. That year, Maurizio
Flammini, president of FGSport, asked Dunlop, Michelin and Pirelli to share
equally in supporting the premier World Superbike series.The deal mirrored
the spec tire rules in Formula One to level the playing field across tire
suppliers, providing each rider with equal tires and trackside support. Riders
and teams, unsure of the impact on the competitive landscape, seemed tentative.
Issues of global quality, logistics, and the ability to provide trackside
support seemed insurmountable for the tire companies. The deal did not
happen.
In 2003, the Pirelli motorcycle sector continued its overall success.
Young sensation Chris Vermeulen won the highly contested 2003 World Supersport
title, making it two in a row for Pirelli. Resident “race-lunatic” Adrian
Archibald dominated the dreaded road course at the legendary Isle of Man TT,
winning numerous classes on Pirellis. Professional and weekend club racers
around the world began to consider Pirelli tires more seriously. Pirelli’s
market share growth has continued for the second straight year across Italy,
France, the United Kingdom, the United States, and Japan. Manufacturing
performance improved due to the new Modular Integrated Robotized System (MIRS)
implemented at the primary motorcycle tire factory in Breuberg, Germany. As a
result, the new Diablo and Diablo Corsa tires (manufactured via MIRS) obtained
homologation for Ducati, Honda, Aprilia, and MV Agusta. By the 2003 World
Superbike round at Laguna Seca, promoter FGSport and the Federation
International Motorcycle (FIM) were looking to make good on the promise of a
true spec tire series. The news again shook an industry already dealing with
major rule changes. The idea to promote a more level racing grid by
eliminating the special one-off tires handed out to the top teams was not on
everyone’s agenda. Some speculated this would allow the promoter to capture
needed funding, while questions remained: Would this be better for World
Superbike racing? Which tire company could fill this global
promise?
 Up to 6,000 race tires are supplied by Pirelli for each round of the
championship. (Click image to enlarge)
Delivering and installing up to 6,000 tires (including the varying
compounds and profiles) for all 2004 World Superbike riders, at each event
around the world, would not be easy. FGSport and the FIM again broached the idea
with Bridgestone, Michelin, Dunlop and Pirelli. Due to business, technical, and
political issues, no one jumped on the deal. Pirelli, with the least amount at
stake, did show some interest. In turn, FIM requested a formal proposal with new
terms and a short one-week turnaround from Pirelli.
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