By Denna Bowman
More tyres manufacturers are expected to raise their prices in the US, according to a leading industry analyst.
However, Saul Ludwig concludes that price hikes are good for the beleaguered tyres industry.
Lugwig wrote in his latest report: “Within the last several days, several tyre manufacturers have announced price increases in North America to cover the cost of rising raw materials.
“This is positive for the industry and consistent with the note we wrote in early November following our trip to the SEMA show.
“We expect several other manufacturers, including Cooper and Michelin, to join the others and announce their own price increases within the next several weeks.”
Consumer tyre price increases by Yokohama, Bridgestone, Continental, and Nexen will come into effect on the 1st January 2010. While Goodyear and Falken raised consumer tyre prices at the start of the month.
“Tyre demand is improving, and manufacturers with whom we have spoken are struggling to keep up with demand,” Ludwig added.
“With September inventory levels remaining very low – down 25% from September 2008 – it could be six to nine months before inventory levels return to normal rates.”