By Katherine Clarkson
At least three leading tyres makers have cancelled long-term Indonesian rubber contracts, according to Reuters news agency.
The crippling effects of the global downturn on the car industry have already had a massive impact on tyres manufacturers, forcing them to slash jobs and enforce temporary shutdowns at plants around the world, including the UK.
Now dealers have told the international news agency that SMPT, the rubber purchasing arm of Michelin, Yokohama Rubber and Continental, have all pulled out of provisional agreements with rubber suppliers.
However, the sale of replacement tyres has not seen such drastic decline and tyres manufacturers are optimistic this market will begin to pick up later in the year.
The decline in new car sales highlights how consumers are being much more careful with their spending. Even those who have not lost their jobs are searching for better value for money.
etyres, the UK’s leading online tyres retailer, has been experiencing record demand, because its mobile fitting service means there are no expensive depots to run, so low overheads mean cheaper prices up to 40% cheaper than leading high street tyres depots.