By Oliver Hall
Continental are set to raise the price of their tyres in Europe by an average of 5 per cent from the start of 2011.
The tyres manufacturer has blamed the escalating costs of raw materials on the price rises.
Continental announced: “We are currently working on implementing this price increase right across Europe in order to offset at least some of the substantial increases experienced this year in the cost of raw materials.”
The measure will be applied to replacement summer tyres sold under several brand names by Continental, the biggest European tyre distributor, a statement said.
“At well over three dollars per kilo, the prices for natural rubber are now at a historic high,” the company explained.
Natural rubber accounts for more than 40 percent of a tyre, and Continental was working hard “to find alternatives to gradually replace it,” the statement added.
Rival tyre maker Michelin said in July it might also have to raise its prices.