Industry braces for more price increases
No fewer than 10 tiremakers recently have raised or will raise their tire prices. The reasons? Escalating raw material, energy and transportation costs.
Three companies – Groupe Michelin, Federal Corp. and Nexen Tire America Inc. – raised prices on April 1.
Michelin increased prices on its original equipment passenger and light truck tires sold worldwide. Federal hiked prices on all of its tires produced in Taiwan and China, including a 5% increase for its Federal and Hero brand tires. Nexen raised prices by 7% “across the board," according to Nexen officials.
Kumho Tire U.S.A. Inc. and Yokohama Tire Corp. will enact price increases in May. Kumho will raise tire prices up to 10% depending on tire line and model on May 1. Yokohama will raise its OTR tire prices up to 5% and its medium truck tire prices up to 6%, with in-line adjustments to be determined later.
June 1 will see Bridgestone Firestone North American Tire LLC (BFNT), Bridgestone Canada Inc., Falken Tire Corp., Pirelli Tire North America and Titan International Inc. implement price hikes.
BFNT and Bridgestone Canada will raise their passenger, light truck, truck, bus, farm and OTR tire prices up to 10% on that day. Hikes will effect the companies’ replacement, OE and export channels.
Falken will raise prices on eight different tires, including the Falken Ziex ZE912 60/65 (5%); the Falken Ziex ZE912 UHP (5%); the Falken Radial A/P (7%); the Falken Landair H/T (7%); the Falken STZ-01 (up to 6%); the Falken STZ-04 (up to 6%); the Falken RT-615 (5% to 8%); and the Falken FK-452 (up to 5%)
Pirelli will raise prices on its passenger and light truck tires sold in the U.S. up to 5%.
Meanwhile, Titan will raise prices on its replacement Titan, Goodyear and General brand OTR, farm and construction tires; increases will range from 4% to 35%, according to Titan officials.
On July 1, Michelin will boost its North American Michelin, BFGoodrich, Uniroyal, private and associate brand passenger and light truck tire prices up to 8%. Michelin also will increase prices on its earthmover and industrial tires up to 8%, effective July 1.