A European vehicle leasing alliance is looking to further exploit its pan-European purchasing leverage, after finalising a major deal with three tyre manufacturers which could save its members up to €400,000 a year.

The European Fleet Funding and Management (EFFAM) alliance, has signed the tyre deal with Goodyear-Dunlop and Michelin following a comprehensive tender and negotiating process'.

Fleet News Europe first revealed the tender offer last November.

'The deal is underpinned by parallel arrangements with Euromaster (ATS in the UK), members of the Goodyear-Dunlop retail organisation in key counties and Kwik-Fit,' the alliance said.

It added that EFFAM's combined buying power has: 'led to considerable cost savings for the 270,000-strong fleet and with tyres constituting 30% of maintenance costs, these savings will make EFFAM members more competitive'.

EFFAM chairman Steve Simpson said: 'We have chosen three preferred tyre manufacturers based on network, availability and brand image. This definitely we hope to achieve with other suppliers, but we'll make sure the tyre deal delivers the benefits to EFFAM and manufacturers. That way we can point to it as a role model for other products and services we buy in.'

Michelin's European car fleets manager Peter Philpott said: 'This is an initiative Michelin is proud to be a part of. It will clearly give improved purchasing power to the individual members of EFFAM while, at the same time, allowing Michelin to grow its business and bring added-value ideas to the group.'