Tires are a major operational cost for commercial fleets. With constant maintenance, repair and replacement necessary, any increase in cost can be a serious threat to a company’s bottom line. Now it seems that this coming summer will see significant price hikes by several major tire makers.
Hancook Tire America Corp. will raise the price of its passenger, light and medium truck tires by up to 6 percent starting June 1. Specific price increases will vary according to product line and size of tire.
Bridgestone Bandag Tire Solutions, a division of Bridgestone Americas Tire Operations, has already increased its unit prices, also by up to 6 percent. The increase applies to Firestone brand, Dayton brand, and truck and bus radial tires.
Kumho Tire Inc. will also be raising prices on passenger and light truck tires, though their hikes will reach up to 8 percent, with additional price adjustments across all lines to follow.
All of these price hikes are being blamed on increases in the cost of raw materials and labor. Troubles with Chinese rubber production have doubled the cost of natural raw rubber and exports have suffered as a result of high tariffs. If these trends continue, more price increases could be on the horizon.
Photo courtesy of Mykl Roventine under the Creative Commons License