Pirelli Tire North America (PTNA) is raising prices in the United States by an average of five per cent for all passenger and light truck tyres. According to a company statement the price increase comes in response to increasing raw material, energy and logistic costs. The exact amount of the increase will vary by product line and/or size. New prices will take effect on 1 November 2007.
According to Michelin, the European OE car and light truck tyre market rose by 11 per cent in August compared with the same month of 2006. In contrast, the market in North America contracted by 3 per cent. Sales of replacement car and light truck tyres remained level in Europe during the month, but increased 1.7 per cent in North America.
Year to date, Europe’s OE car and light truck tyre market went up 4.3 per cent from the same period a year earlier, while OE sales in North America were punctuated by a 2.6 per cent decline. Replacement tyre sales were up 1.2 per cent in Europe and 2.1 per cent in North America during the same period.
In Europe OE truck tyre sales jumped 20 per cent in August, claimed Michelin, while across the Atlantic sales were a massive 37 per cent down. The replacement truck tyre market was far steadier, with a 2.4 per cent increase reported in Europe and a 0.2 per cent drop in North America.
(Akron/Tire Review) The RMA says it expects 2007 tyre shipments to “decrease slightly” due to continued weakening in the OE market. In its revised forecast, the RMA says the replacement market is up slightly, but not enough to offset decreased OE demand. The RMA now sees replacement market shipments up almost 2 per cent, but OE markets will be down about 8 per cent overall.
Segment by segment, the RMA sees:
• OE Passenger Tyres: Decrease by approximately 4.5 per cent in 2007 to 46.0 million units from 48.2 million units in 2006, due to decreases in domestic light vehicle sales and production.
• OE Light Truck Tyres: Decrease of approximately 12 per cent or 600,000 units from 2006 levels, due to more light trucks being fitted with P-metric tyres rather than LT-metric units.
• OE Medium/Wide-Base/Heavy Truck Tyres: Due to reduced new truck sales, the forecast has been revised downward to a 29 per cent decrease for 2007, or nearly 4.8 million units in total, or approximately 2 million units less then the 6.8 million units shipped in 2006.
Continental Tire North America plans to raise prices for US market tyre lines, including Continental and General brand passenger car and light truck tyres, by up to 6 per cent. The price increases will take effect on October 1.
The company reportedly attributes the price hike to the industry’s usual suspects – an escalation in transportation and raw material costs, including natural rubber.
Continental has made a new addition to their Passenger & Light Truck Tire division’s press team. Starting July 1 was new international press officer Ansgar Wilkendorf (48). Wilkendorf’s main duties are coordinating activities between headquarters and the international market organisations for passenger and light truck tyres and providing assistance in the day-to-day business.
“I am very much looking forward to this new challenge with a leading German tyre manufacturer,” said Wilkendorf. In the past fourteen years he worked as a motoring journalist, since 2002 as editor-in-chief of a major European magazine reporting on the automotive world. Trained as a motor mechanic, Wilkendorf’s life has revolved around motor vehicles, and he is thus well acquainted with the needs of the groups he will be working with. As international press officer, Wilkendorf reports to the head of Public Relations – Passenger and Light Truck Tire, Alexander Lührs.
(Akron/Tire Review) Hankook Tire America Corp. announced a price increase of up to 7 per cent on its full line of passenger, high performance and light truck tyres. Increases will vary by product line and size and take effect July 16.
Hankook said the increases reflect rising raw materials costs, particularly petroleum products, as well as higher transportation and general operating expenses. The tyremaker also mentioned that changes in China VAT regulations are factors in the increase.
(Akron/Tire Review) Continental Tire Canada Inc. is raising prices up to 5.5% on all Continental, General and associate brand passenger and light truck tyres.
Specific increases will vary by market line and/or size and take effect July 1. The increases are “a result of the escalation of transportation and other related operational expenses,” stated Continental in a release.
Starting in May, Maxxis will supply original equipment tyres for two General Motors 2008 models manufactured in Thailand. Tyres produced at the Maxxis International-Thailand plant will be OE for the Korean GM Daewoo designed Chevrolet Captiva SUV and Optra passenger car, both built at the General Motors Thailand assembly centre in Rayong Province, about 120 km south of Bangkok.
For the Captiva, Maxxis will supply sizes 215/70R16 MA-707 and 235/60R17 MA-707, with 255/55R18 MA-S2 as an optional size. For the Optra, Maxxis will supply size 195/55R15 MA-P1.
The Maxxis tyremaking facility is also located in Rayong Province. The relatively new plant, completed only three years ago, produces passenger car and light truck tyres for both the domestic and export markets.
(Akron/Tire Review) The Rubber Manufacturers Association (RMA) expects tyre shipments this year to “increase slightly” compared to 2006. Limited growth in the replacement tyre market will be offset by decreases in the OE markets, the RMA stated. In 2007, the replacement tyre markets will show an increase of 1.4 per cent, with OE markets declining 3.8 per cent.
“Overall, combined OE and replacement shipments for 2007 auto and truck categories are anticipated to increase by just over one million units to approximately 307 million total shipments,” according to the RMA’s Tire Market Analysis Committee. Additional forecasts for the group include the following:
The latest ATMA figures show that during the month of July Indian tyre production rose 18 per cent year-on-year to 6.354 million units. This follows a 19 per cent year-on-year growth in production during June (06/2005: 5.19 million units; 06/2006: 6.187 million). The latest increase was fuelled by sharp rises in passenger car and tractor tyre production. Passenger car tyre production reached 1.28 million units in July, up 16 per cent compared with the same time last year.
Kumho Tire is to voluntarily recall 78,321 light truck tyres sold in the North American market due to blisters on sidewalls. The tyres to be recalled are nine types of product under the Venture HT 824 and Venture AT KL78 series. They were manufactured in Kumho Tire’s factory in Nanjing, China, exclusively for the U.S. and Canadian markets.
In the USA the results of the National Academy of Sciences’ National Tire Efficiency Study that began at the end of 2004 are due to be released this week.
German tyre manufacturer Continental has appointed Tyres4U as its exclusive distributor in New Zealand. In announcing the appointment, Tim Sanders, Continental general manager Oceania said: “We are very pleased that Tyres4U has accepted our proposal to distribute the Conti and Barum range of tyres in New Zealand. We have a long relationship with the group and with Tyres4U NZ now distributing our passenger range it lines up perfectly with the Tyres4U Australian operation and the products they have been selling for over 30 years.”
Bridgestone Australia Ltd has unveiled a new Tyre Assembly Machine (TAM) at its Salisbury, Australia facility. According to the company, the new TAM represents a “significant investment” and will be used to manufacture 17 inch tyres, which are currently sourced from outside Australia.
Pirelli Tire North America will increase prices for its passenger and light truck tyres by 5 per cent. The price increase with be effective from 1 June in the US and Canada. Pirelli is the latest in a string of price increases from major manufacturers in the US.
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