Dealers report improving tire volume, Ludwig says
“Tire purchase deferrals and ultra-bald tires may have finally unleashed the pent-up demand I expected to occur in second half of 2009,” says Saul Ludwig in the December installment of the "Ludwig Report" in Modern Tire Dealer magazine.
“Nearly every tire dealer I have spoken with in the last two months reports improving tire volume. Inventories are low, Chinese imports will decline, the dollar has weakened and raw material costs are up 20% in 4Q09 vs. 3Q09.
“As I predicted last month, tire prices are going up.” Ludwig says.
Ludwig is a managing director with KeyBanc Capital Markets Inc. based in Cleveland, Ohio. Look for the full "Ludwig Report" in the December issue of Modern Tire Dealer magazine.