By Denna Bowman
Michelin is the latest tyres manufacturer to hike prices in the US on the back of the rising cost of raw materials.
The French tyres manufacturer will increase prices on its Michelin, BFGoodrich, Uniroyal, private and associate brand passenger, light truck and motorcycle tyres up to 6% on June 1.
The price hike will only apply to the replacement market.
Earlier this month, Michelin announced that it will raise prices on replacement truck tyres sold in the US by 3% to 7%, effective May 1. The same day, Michelin also will hike its US and Canada ag tyre prices by an average of 4.5%.
Industry analysts predicted Michelin would raise its prices after Bridgestone, Continental and Goodyear, three of the largest tyres manufacturers in the world, announced similar rises earlier this month due to the rising cost of materials.
Continental blamed the price hikes on the rising cost oil and natural rubber, which has doubled, and comprises 40 percent of the raw materials in a tyre.
It said oil prices rose 80 percent over last year’s period, increasing by extension the costs for a petroleum by-product used in tyres called carbon black.