By Denna Bowman
Goodyear is raising the price of all its consumer tyres sold in North America by 6 percent to offset higher raw material costs.
The price hike comes into effect on December 1st and, according to Goodyear spokesman Jim Davis, it is the tyres company’s first price increase in more than a year. It last raised prices in September 2008 by 10 percent, he said.
The price increase affects all its consumer replacement tyres. The increase will be felt by the company’s dealers and distributors, who buy tires directly from Goodyear. It is up to the distributors whether to pass the increase on to consumers, Davis said.
Goodyear has used price increases in the past and remained focused on producing more high-end tyres to sidestep some of the financial problems experienced by its rivals.
The company, however, expects its fourth-quarter earnings in North America to drop by as much as $125 million amid cost issues in its commercial tyre unit.