] Michelin this week revealed that it has begun fleet
] testing of an RFID transponder embedded in its tires to
] enable them to be tracked electronically.

This is EZpass on steroids. These will essentially allow you to track people's movements in a very scalable and automatic way. RFID does offer the ability to track serial numbers easily without having to worry about damage. I don't see an easy answer that gives the tire industry what it wants without enabling tracking. We'll probably need a law against reading these without permission, which will, of course, work about as well as jay walking regulations....
Hrm...