|
|
Home | Tires
Tire Prices Also Climbing
Things are not going drivers way this year. Gas prices have soared past the $3 gallon mark. Now there is news that tire prices are rising as well primarily because oil is used to manufacture tires. The Associated Press reports that four major tire makers have announced recent price increases -- some prices are going up by as much as 8%.
Four major tire makers have announced price increases for this fall, following similar announcements by most manufacturers earlier this year. Goodyear Tire & Rubber Co. has announced three price hikes this year alone as oil nears $70 a barrel, and with prices for steel and natural rubber also rising.
The latest Goodyear hike, a 5 percent to 8 percent increase depending on the tire model, took effect Thursday. So a tire going for $100 could potentially go for $108. The Ohio-based company also increased prices in February and June.
Despite the price increase it is important to remember to buy high quality tires that can protect you on the road. Saul Ludwig told the AP that people don't spend more on sneakers than tires.
Raw materials typically are 40 percent of the selling price of tire, so percentage increases in the mid-single digits are in line with what companies have to charge to cover costs, said Saul Ludwig, who tracks the industry at KeyBanc Capital Markets in Cleveland.
"In my judgment, the average consumer doesn't appreciate the value in the product," Ludwig said. "More often they'll spend more for a pair of tennis shoes than for a tire that travels 70 mph, hits potholes and protects their life."
Posted on September 7, 2005
Permalink | | | Comments (View)
| |
|
The Writers Write
Lifestyle Network
|
|
