Effective March 1, 2011, Federal Corp. will raise prices on its passenger and light truck tires by up to 12% worldwide. Percentage increase will vary by product lines and continents contingent upon the overall market conditions.
There also will be in-line adjustments for all onward orders and remaining back orders.
“In addition to previously announced price adjustments, a further price increase has become necessary to try and recover some of those costs," says Henry Lin, director of global sales.
"As a result, the increase at this time is a response to the continuing rise in raw material costs. However, Federal Tires has made every effort to minimize these increases, as we committed to delivering a premium package of value to our distributors.
“Our factories continue to operate at maximum capacity with improvements in productivity, flexibility and efficiency to cope with the challenges, including the high costs of raw materials and increased demand for our quality products," he says. "We shall continue to work closely with our customers to converge various perspectives to promote desirable price/product mix while allowing us to stay in alignment with the market dynamics.”
Federal is the latest tire manufacturer to announce an upcoming price increase.
Consumer
* Yokohama Tire Corp. will increase prices by up to 8% on all of its consumer tires effective March 1, 2011. In-line adjustments will be announced at a later date.
* Kumho Tire U.S.A. Inc. will raise prices on all passenger, light truck and medium truck tires effective March 1. Kumho says the details of this increase will be provided to its customers in the near future.
* Goodyear Tire & Rubber Co. will raise consumer tire prices on March 1. The increase, up to 6%, will apply to all brands in the United States and Canada.
* Falken Tire Corp. also will raise prices on March 1. The price hikes on Falken passenger and light truck tires will range from 5% to 8% depending on the size, with in-line adjustments as needed.
* Bridgestone Americas Tire Operations LLC will raise replacement and original equipment consumer tire prices one month later, on April 1, The increases on Bridgestone, Firestone and associate brand passenger and light truck tires in the U.S. and Canada will vary up to 8%.
* Cooper Tire & Rubber Co. (2.5%) and Michelin North America Inc. ("the increases will vary by product line") raised consumer tire prices on Feb. 1. Nexen Tire America Inc. (up to 8%) did the same on Jan. 1.
Commercial
* The Bridgestone Off Road Tire, U.S. & Canada Commercial Tire Sales division will increase prices on its mining, construction and industrial tires by 12%, "with some in-line adjustments." The increases are scheduled to begin March 1.
The Bridgestone Agricultural Tire, U.S. & Canada Commercial Tire Sales division announced a 4% price increase effective April 1 on the following tires: Firestone agricultural, construction and forestry tires; Bridgestone garden tires; and Regency tires sold in the United States and Canadian replacement markets.
* Michelin will increase prices on Michelin brand replacement agricultural tires sold in the U.S. and Canada on March 1. The hikes will be up to 8%.
The company already increased prices on its Michelin earthmover and industrial replacement tires sold in North America up to 7% on Feb. 1. It increased prices on Oliver and MegaMile retread rubber products sold in the U.S. up to 7% on Jan. 3.
* CGS Tyres Group (7.5% to 10% on farm and industrial tires), Titan Tire Corp. (up to 8% on farm and OTR tires), Yokohama Tire Corp. (up to 5% on bias and radial OTR tires) and Continental Tire the Americas LLC (up to 8% on truck tires) raised their commercial tire prices on Jan. 1.
