Rising costs force price hikes by Falken
Falken Tire Corp. will increase prices on its consumer tires effective July 1. It is the second series of price increases announced by Falken this year.
Effective July 1, Falken will increase prices by up to 8% on all passenger and light truck tires. In addition, the company will raise commercial truck tire prices by up to 10% effective June 1. All lines also will be subject to possible in-line adjustments.
The increases will be applied to all warehouse orders placed on or after the price increase effective date. The increase also will apply to June factory-direct orders.
The details of the actual increase percentages, including any in‐line adjustments, will be announced shortly. New price schedules will be sent out to dealers in the near future, according to the company.
Falken adds that new orders placed prior to the price increase cannot exceed 125% of a dealer’s current monthly average for orders placed in the last six months. Order amounts exceeding this average will be subject to possible cancellation.
"Falken remains committed to doing everything possible to keep our products competitively priced, but the continued escalation in the cost of raw materials necessitates that we announce an additional price increase," says Andrew Hoit, director of marketing.
Falken is the latest company to raise prices recently.
* Hankook Tire America Corp. will raise prices on its commercial tires, including Hankook and Aurora, effective June 1. The increases will be up to 9%.
* Yokohama Tire (Canada) Inc. raised prices on its consumer tires on May 1, 2011. According to the company, all pricing on unfilled orders placed before May 1 "will be re-calculated at the new prices."
The price increases vary by tire category: High Performance, 5%; Light Truck, 4%; Passenger Touring, 4%; Winter, 4%.
* Michelin North America (Canada) Inc. will raise consumer tire prices up to 10% effective June 1, 2011. (The product lines included in the company's April 1, 2011, "Winter Tires Base Price Book" are not included.)