Hit by the financial crisis, automakers across the globe cut their production one after another in order to ease their inventory and capital pressure. As a result, many tire makers are severely impacted.

According to Michelin¡¯s 2008 financial report, the company¡¯s sales volume slumped by 16% in the fourth quarter of the year due to the dire situation faced by the tire market. In the whole year, it¡¯s sales volume dropped by 2.9% and its profits were thus down by 44%.

Another giant in the tire market, Goodyear was also mired in a difficult situation. To beat down the current unfavorable business environment, Goodyear is planning to introduce more competitive new products.