CLERMONT-FERRAND, France (June 4)—Groupe Michelin's decision to stop supplying tires to General Motors Corp. in Europe will affect Fiat S.p.A. as well, as GM handles tire purchases for the Italian group according to an agreement the two car makers signed two years ago. The revelation effectively doubles the impact on Michelin's sales, since Fiat and GM both produce about 1.8 million cars a year in Europe. Neither Michelin nor GM divulged the size of Michelin's business with the car maker, but a conservative estimate would be about 4 million to 5 million units, based on Michelin's OE market share claims and five tires per vehicle. Michelin claimed a 35-percent share in 2000 of the 92 million-unit OE market for passenger and light truck tires in Europe, and said at the time that both GM and Fiat were among its 10 largest customers.
Michelin OE decision impacts Fiat
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