How many independent tire dealers could be directly affected by the United States International Trade Commission's decision to put a limit on the number of Chinese-built consumer tires entering the U.S.? Modern Tire Dealer has the answer.
In our recently completed "Made in China" tire survey, 88% of the respondents said they sell tires that are made in China. The majority of them -- 67.5% -- buy the tires through local warehouse distributors.
When asked, "Do you think that limiting the number of Chinese tire imports will hurt your business?" 59% of the dealers who sold tires made in China answered "No." The remaining 41% answered "Yes."
(Look for reasons why the dealers who answered "Yes" believe that limiting the number of Chinese tire imports will hurt their businesses, plus more survey results, in the July issue of MTD.)
If sourcing passenger and light truck tires from China becomes cost prohibitive or excessively difficult, will dealers source tires from other countries? Eighty percent of them will, according to the survey results.
The "affirmative determination" of the U.S. International Trade Commission was in response to a petition filed by the United Steelworkers that a quota be placed on the number of Chinese-built tires entering the U.S. market (see "Union seeks relief from flood of Chinese imports," April 21, 2009, on www.moderntiredealer.com).
The ITC says it will release more information about the ruling and the remedies it will recommend at a later date. For more information on the ruling, see "ITC makes affirmative determination in Chinese import case," June 18, 2009.
