Tire demand to improve in 2010, Ludwig says
"As I suggested late last year, Chinese imports fell 50% in October and I expected a similar falloff in November and December," says Saul Ludwig in the latest installment of the "Ludwig Report" in Modern Tire Dealer magazine.
"U.S. tire producers are recapturing market share that has been lost over the last several years. With improving demand and factories running full out, pricing will be very firm. You will see far fewer marketing specials from your suppliers.
"Continental and Pirelli gained market share in 2009 while imports were the ones who lost share.
"I expect 2010 to see much improved tire demand vs. 2009."
Ludwig is a managing director with KeyBanc Capital Markets Inc. based in Cleveland, Ohio. Look for the full "Ludwig Report" in each issue of Modern Tire Dealer magazine.