Federal announces second price hike
Federal Tire Corp. reports it will implement a price adjustment on Federal and Hero brand tires prior to August 2008.
The last price hike the company announced "can only offset the increase of cost in the fourth quarter of 2007," the company says. "We are forced to adopt (a price increase of) up to 10% for our product of Taiwan origin and 16% for our Chinese-made products."
The increase in costs for raw materials and energy was the deciding factor behind the price hikes, the company reports. "In addition, the higher rate of increase for products from China results from the over-proportionally rising labor cost."