Pirelli efficiency measures delivering significant results

Milan, Italy – Pirelli has achieved gross efficiencies worth around €61 million under its ‘competitiveness program’ over the first nine months of 2023, chief executive officer Andrea Casaluci has reported.

The return, which equates to 65% of the target for the full-year, is in-line with expectations, Casaluci said on an investors’ call to discuss Pirelli's financial results for the first three quarters.  

“The greater benefits come from the ‘product cost’ project.,” said the CEO, pointing to progress in the areas of modular design, design-to-cost and reducing the complexity of the structure and weight of tires.

The ‘manufacturing’ project, the Pirelli leader continued, “is going to generate, as expected, the strongest efficiencies in the final quarter of the year.

Gains will accrue from improvements across tire production, including through the application industrial IoT to predictive maintenance and project to reduce energy-consumption.

Elsewhere, Casaluci noted progress with the optimisation of logistics and supply-chain processes and  – under the ‘organization’ project  – with process digitization and staff upskilling.

Along with price/mix (+€449 million), the structural efficiency gains, enabled Pirelli to more than offset a range of negative impacts over the first three quarters of 2023.

These factors included: increased raw material costs (-€77 million); higher input – energy, labour and transportation – costs (-€180 million); and exchange rate effects (-€115 million).