Rubber association pessimistic about Germany’s tyre making future

Those of us living in countries that have experienced extensive deindustrialisation may be able to commiserate with workers in Germany’s tyre plants, including the many who have received unsettling news of late. Last week, Goodyear announced it would close two of five factories in the country, and Michelin is currently contemplating the future of operations at three sites. Michael Berthel, chief economist of the German Rubber Manufacturers’ Association (WdK), recently commented that “the situation is not entirely healthy” – and this may be an understatement. Berthel believes an uncertain future awaits more than half of Germany’s tyre manufacturing locations.

In addition to falling car production figures, significant declines in the replacement consumer and commercial vehicle tyre businesses, changes in consumer mobility behaviour and “massive inventories,” Berthel considers high energy costs to be the “most acute problem” that companies manufacturing in Germany face, as well as high raw material prices. During the WdK autumn conference on 7 November, he stated that “from twelve tyre locations, it is questionable whether six to ten will be retained.” And it currently seems that this prognosis may be realised sooner rather than later. “There is no light at the end of the tunnel for the time being,” added the WdK chief economist in regard to Germany’s rubber sector.