Monsieur Tire

"Tires may not be glamorous, but the brand is a jewel." So says EDOUARD MICHELIN, 41, CEO of the world's leading tiremaker, who is credited with opening up the secretive culture of the company his great-grandfather started in 1889. On the eve of unveiling the firm's latest invention--an airless tire--he spoke with TIME about the French company's latest opportunities and challenges.

TIME: The auto industry is pretty stagnant. How do you grow?

MICHELIN: You're right that some markets like cars are fairly flat. But even if you don't sell more SUVs next year, the SUVs on the road will still need new tires. Then there's technology, which creates totally new market segments. We make a five-ton tire for mining equipment. It's as wide as this table, and each tire carries 100 tons. But the big opportunities will be in new markets, like Romania, Mexico, Colombia, Brazil and, of course, China.

TIME: Michelin converted the world to radial tires. What's next?

MICHELIN: Tires that can run flat. Our Pax system lets you continue to drive for 20 miles at 65 m.p.h. even when a tire is flat. We also have an airless tire. In addition, we are looking at ways that, perhaps in 10 years, the tire will be able to talk to the car, saying "I'm worn out. I need pressure. Be careful; don't steer too fast; the road is slippery."

TIME: As a young CEO, how did you manage change?

MICHELIN: We went through a near death experience [with heavy losses] in 1993, which proved that things needed to be changed. We took all the managers of the company--3,000 people--for two weeks and said, "Let's look at what's not going well." We assembled a team that could lead the change process--both younger managers and the most experienced managers.

TIME: Is there a rethink under way of the costs of globalization?

MICHELIN: I think there is a realization that the corporation can no longer be just about the shareholder but that there is social responsibility too.

TIME: How long does it take you to change a tire?

MICHELIN: I do it on occasion. It will probably take me 20 minutes.