Edouard Michelin: Good evening to all of you and thank you for coming in such large numbers to our press conference. I would like first to say that we at Michelin are certainly enjoying a formidable racing season in 2005, both in World Rally Championship, in Grand Prix Motorcycle and also, obviously, in Formula One. Now Pierre Dupasquier regularly reminds me that the race is not finished until the flag has been shown, and there are four more races to go before the season is concluded including the Spa race.

But I thought that, before Formula One leaves Europe at the end of the season, it would be good to come and discuss with you some of the issues for which Michelin is looking for answers and on which our future involvement in Formula One hinges.

Firstly, let me remind you that we have been involved in racing for 117 years and it's probably very hard to count how many championships we have participated in and how many titles we have earned. But you know that for more than a century, the spirit of racing has been very strong for us, which goes with a strong sense of ethics, quality and commitment. And when I look at today's situation, when I see that fundamental changes, which is a total sea change, like the proposal made by the FIA of controlled monopoly tyres for 2008, with a specific single supplier, I wonder from time to time, if these values of competition are still shared.

As you know, related with this fundamental issue for a tyre company of a single tyre manufacturer and a control tyre, we have clearly stated repeatedly that we are opposed to this project and I'm sure you have all had the opportunity to talk about it with Pierre Dupasquier.

The main argument which is presented in favour of controlled tyres is that competing tyre manufacturers increase the number of tests and therefore Formula One costs.

But, we have solutions to reduce costs without limiting competition between tyre makers. Some of it has been implemented last year; there is much more to do and we have done it in other disciplines like World Rally Championship in consultation with our competitor Pirelli, but with the strong support of the governing body of World Rally Championship. And I've asked the Michelin team to consult with Bridgestone to draw up new rules and proposals to continue to achieve significant savings.

Among the possible measures are clearly reducing the number of tyres per race. There is also reducing the distance covered in official and private testing and there are probably savings of more than $100m throughout all the teams by controlling and reducing the amount of official and private testing. Clearly, therefore, the economic argument for wanting to eliminate competition and choice between and for tyre manufacturers simply does not make sense.

This is our analysis, so maybe there are other reasons behind the FIA proposals for a monopoly tyre. We would like those behind these ideas within the FIA to be transparent about their intentions and this is not the case today.

Now, when I see a Formula One team, apparently losing repeatedly because of its tyres, strongly advocating for the advance of the control tyre for everybody, in sync, by the way, with the FIA policy, I would strongly suggest as a matter of consistency to this team, that if ever there was difficulties with engine performance, to also request that the same engine would be imposed for everybody. This is simply a matter of consistency.

Now, in the even that controlled tyres are adopted, we assume this would involve a tender offer, a call for tenders. What would the selection criteria be? Does the FIA undertake to disclose the selection criteria and reasons for its choice. This question is, for me, as we are making tyres, seems to me very crucial, and we at Michelin are seeking more transparency on these rules and the way in which they are applied.

As an example, the conditions in which the WTCC contract for tyres for 2006, for which Michelin had bid, was granted to Yokohama remains a mystery to us. This was done a few days after the Indianapolis Formula One Grand Prix, by the way. What were the criteria that brought about the FIA final decision? Were the technical features of the tyres taken into account? Was it the financial terms of supply? Was it the advertising spot? Were there any other reasons?

What I have heard recently is that the first test of tyres at the WTCC seems to be fairly challenging, and I encourage you to get some more feedback about that.

Now, at the end of the day, there is one clear principle which is very dear to Michelin and which underpins the technical arguments concerning multiple tyre suppliers, F1 competition and this is very much in our genes at Michelin, is a fantastic technological showcase must remain so. Let us not reduce Formula One into a mere promotional exercise and I'm sure the GP2 race this afternoon was interesting but I'm afraid this is simply not Formula One.

Formula One is about, and must remain, intense competition and technological challenge, a melting pot where engineers, aerodynamic experts, engine designers and, in our opinion, tyre makers test, develop, innovate and do so for the benefit of the automotive world as a whole and for the future benefits of consumers.

Regarding tyres, we want healthy competition with one or even several tyre companies. Are full aim is to make sure that teams, whose cars are fitted with Michelin tyres, our partners teams, have an edge on their competitors because they have chosen Michelin. This is our pride, this is our commitment.