Michelin cancels supply agreement with General Motors in Europe
Groupe Michelin will not renew its original equipment tire supply contract with General Motors Europe after the deal expires on July 31, 2002.
Michelin says its strategy "is no longer compatible with General Motors' purchasing policy."
Michelin's production capabilities that were devoted to GM will be "progressively redeployed to serve other market needs," according to a statement from the French tiremaker.
"We remain confident that our two companies will know, in due time, how to generate a renewed cooperation," says Herve Coyco, head of Michelin's worldwide passenger car/light truck divison.
Michelin brand tires enjoy a 5% share of the United States/Canadian OE light vehicle market, according to Modern Tire Dealer research.
The company's BFGoodrich and Uniroyal brands enjoy a combined 20% of the same market (10% each).