Shares in French tyremaker Michelin plummeted following a warning from the company of a decline in demand for tyres, particularly in Western Europe and China, due to new EU emissions standards and a slump in the auto market in China. There is a fear that Michelin's decline could also drag down the shares of its competitors in Europe and the US. The company reported on Thursday that group sales fell 1.1 per cent in the first nine months to €16.2 billion ($18.6 billion). Michelin has already been cutting costs due to rising competition and plans to cut 2,000 jobs by 2021, primarily in France. The European Commission said it was "concerned" about the impact on Europe's car industry as well as the wider economy.
Shares in French tyremaker Michelin plummeted following a warning from the company of a decline in demand for tyres, particularly in Western Europe and China, due to new EU emissions standards and a slump in the auto market in China. There is a fear that Michelin's decline could also drag down the shares of its competitors in Europe and the US. Michelin has already been cutting costs due to rising competition and plans to cut 2,000 jobs by 2021, primarily in France. The European Commission said it was "concerned" about the impact on Europe's car industry as well as the wider economy.